What Are Current Assets?

The Current Assets account is a balance sheet line item listed under the Assets section, which accounts
for all company-owned assets that can be converted to cash within one year. Assets whose value is
recorded in the Current Assets account are considered current assets.

Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable
securities, pre-paid liabilities, and other liquid assets. Current Assets may also be called Current
Accounts.

KEY TAKEAWAYS:

Current Assets is an account listed on a balance sheet that shows the value of the assets owned by a
company that can be converted to cash through liquidation, use, or sales within one year.

Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable
securities, pre-paid liabilities, and other liquid assets.

The Current Assets account is important because it demonstrates a company's short-term liquidity and
ability to pay its short-term obligations.