Financial Statements
Current Assets
Assets expected to be used, sold, or turned into cash within about one year.
Also called: short-term assets
What it means
Current assets are short-term assets such as cash, receivables, inventory, and certain other items expected to be converted into cash or used within the normal operating cycle, usually within one year.
Why it matters
They help users assess near-term liquidity and whether the company can meet short-term obligations.