Bitget
Bitget

# GLOSSARY

Finance Dictionary : Current Asset

Current Asset

KEYTAKEAWAYS

Learn about Current Assets, financial resources swiftly convertible to cash within a year, essential for meeting short-term financial obligations and sustaining daily business operations.


CONTENT

DEFINITION

A current asset represents a financial resource possessed by an individual or entity that holds the potential for conversion into cash within a 12-month period or a single operating cycle, whichever is longer. These assets include cash on hand, cash equivalents, short-term investments, accounts receivable, and inventory. Their liquidity and proximity to conversion into cash underscore their classification as current assets.

 

Current assets are a vital component of financial management and balance sheets, as they indicate an entity’s short-term solvency and ability to meet near-future financial obligations. These assets play a crucial role in day-to-day business operations, supporting activities such as covering operational expenses, repaying short-term debt, and facilitating the acquisition of necessary resources.

 

Efficient management of current assets is essential to ensure financial stability and meet working capital requirements.

 

More From CoinRank

CoinRank Finance Dictionary : Cash Outgoing

CoinRank Finance Dictionary : Cash Incoming

CoinRank Finance Dictionary : Cash Flow


DISCLAIMER

CoinRank is not a certified investment, legal, or tax advisor, nor is it a broker or dealer. All content, including opinions and analyses, is based on independent research and experiences of our team, intended for educational purposes only. It should not be considered as solicitation or recommendation for any investment decisions. We encourage you to conduct your own research prior to investing.

 

We strive for accuracy in our content, but occasional errors may occur. Importantly, our information should not be seen as licensed financial advice or a substitute for consultation with certified professionals. CoinRank does not endorse specific financial products or strategies.


WRITER’S INTRO

CoinRank Exclusive brings together primary sources from various fields to provide readers with the most timely and in-depth analysis and coverage. Whether it’s blockchain, cryptocurrency, finance, or technology industries, readers can access the most exclusive and comprehensive knowledge.


NEWSLETTER

SUBSCRIBE

CoinRank