Current Assets (Noun)
Meaning
Assets in the form of cash (or easily convertible into cash).
Classification
Nouns denoting possession and transfer of possession.
Usages
Examples
- A company's current assets are typically expected to be liquidated within a year, such as cash on hand or short-term investments.
- The financial analyst carefully reviewed the company's balance sheet to assess the current assets and make informed investment decisions.
- In a liquidation scenario, current assets such as accounts receivable and inventory are sold off first to pay off creditors.
- Small businesses often rely heavily on their current assets to manage cash flow and meet short-term financial obligations.
- The accountant categorized the assets on the company's ledger as current or long-term to gain a more accurate view of financial solvency.