Financial Glossary

Current Assets

Definition

Current assets are company-owned assets that can be converted into cash within one year, such as cash, accounts receivable, and inventory.

Related Services

Accounting, financial analysis, and working capital management services help businesses track and optimize current assets.

Problem and Application

Insufficient current assets can lead to liquidity issues. Companies must balance asset levels to ensure operational stability.

Conclusion

Effective management of current assets ensures business liquidity and financial health. Businesses should regularly assess asset utilization and cash flow.