Definition of Current Asset
A current asset is a company's cash and its other assets that are expected to be converted to cash within one year of the date appearing in the heading of the company's balance sheet. However, if a company has an operating cycle that is longer than one year, an asset that is expected to turn to cash within that longer operating cycle will be a current asset.
Current assets are usually presented first on the company's balance sheet and they are arranged in their order of liquidity.
Examples of Current Assets
Examples of current assets and the typical order of liquidity include: