Current Assets

Current assets are resources a business owns that are expected to be converted into cash or used up within one year. They include cash, accounts receivable (money owed by customers), inventory (goods available for sale), and short-term investments. These assets are essential for daily operations and help determine a company's short-term financial health. Essentially, current assets are the resources readily available to meet immediate expenses and obligations, providing insight into how well a business can cover its short-term needs.