{"id":1921,"date":"2023-08-23T12:29:21","date_gmt":"2023-08-23T09:29:21","guid":{"rendered":"https:\/\/akaunting.com\/hc\/?post_type=glossary&#038;p=1921"},"modified":"2024-09-03T12:08:54","modified_gmt":"2024-09-03T09:08:54","slug":"current-assets","status":"publish","type":"glossary","link":"https:\/\/akaunting.com\/hc\/terms\/current-assets\/","title":{"rendered":"Current Assets"},"content":{"rendered":"<div id=\"akaunting-terms\">\n\n\n<h2 class=\"wp-block-heading\"><strong>What are Current Assets?<\/strong><\/h2>\n\n\n\n<p class=\"entry-paragraph wp-block-paragraph\">Current assets are assets that show the liquidity and operational efficiency of a business. Current assets are listed on a company&#8217;s balance sheet after its cash and cash equivalents.<\/p>\n\n\n\n<p class=\"entry-paragraph wp-block-paragraph\">Having sufficient current assets is crucial for a company to fund its daily activities and to prepare for unforeseen costs. A company with a robust current asset position has a higher chance of fulfilling its immediate financial responsibilities.<\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><a class=\"entry-links\" href=\"https:\/\/akaunting.com\/blog\/what-are-asset-accounts-in-accounting\" target=\"_blank\" rel=\"noreferrer noopener\">What are Asset Accounts in accounting?<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-4b60f17938359c1b25e8de4261a1b8bf\" style=\"color:#424242\">What are examples of Common Assets?<\/h3>\n\n\n\n<p class=\"entry-paragraph wp-block-paragraph\">Here are some of the most common examples of current assets:<\/p>\n\n\n\n<p class=\"entry-paragraph has-text-color has-link-color wp-elements-b6eaa5169055a679ea5186cc3d815fae wp-block-paragraph\" style=\"color:#424242\"><strong>Cash and cash equivalents:<\/strong>&nbsp;This includes cash on hand, money in checking and savings accounts, and short-term investments that can be easily converted into cash.<\/p>\n\n\n\n<p class=\"entry-paragraph has-text-color has-link-color wp-elements-ab170a5bb703786c63bc44658030d070 wp-block-paragraph\" style=\"color:#424242\"><strong>Accounts receivable:<\/strong>&nbsp;This is money owed to the company by its customers for goods or services that have been delivered or rendered.<\/p>\n\n\n\n<p class=\"entry-paragraph has-text-color has-link-color wp-elements-d124d9d59060de583ef84d84f08d46ca wp-block-paragraph\" style=\"color:#424242\"><strong>Inventory:<\/strong>&nbsp;This is the value of the goods that a company has on hand that are ready to be sold.<\/p>\n\n\n\n<p class=\"has-text-align-center has-text-color has-link-color wp-elements-f03bbdaedb2a8a8966bd6fc3b09eff38 wp-block-paragraph\" style=\"color:#6ea152\"><a href=\"https:\/\/akaunting.com\/invoicing-software\">Invoicing Software for Small Businesses<\/a><\/p>\n\n\n\n<p class=\"entry-paragraph has-text-color has-link-color wp-elements-330bc7d4750a48dc2e0804bac8cba2c0 wp-block-paragraph\" style=\"color:#424242\"><strong>Prepaid expenses:<\/strong>&nbsp;This is the amount the company has paid in advance for goods or services it has not yet received.<\/p>\n\n\n\n<p class=\"entry-paragraph has-text-color has-link-color wp-elements-82c7e4499faabe17db2a5f04951429b3 wp-block-paragraph\" style=\"color:#424242\"><strong>Short-term investments:<\/strong>&nbsp;This includes investments that the company expects to sell within one year.<\/p>\n\n\n<\/div>","protected":false},"menu_order":0,"template":"","letter":[23],"class_list":["post-1921","glossary","type-glossary","status-publish","hentry","letter-c"],"acf":[],"_links":{"self":[{"href":"https:\/\/akaunting.com\/hc\/wp-json\/wp\/v2\/glossary\/1921","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/akaunting.com\/hc\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/akaunting.com\/hc\/wp-json\/wp\/v2\/types\/glossary"}],"version-history":[{"count":7,"href":"https:\/\/akaunting.com\/hc\/wp-json\/wp\/v2\/glossary\/1921\/revisions"}],"predecessor-version":[{"id":2957,"href":"https:\/\/akaunting.com\/hc\/wp-json\/wp\/v2\/glossary\/1921\/revisions\/2957"}],"wp:attachment":[{"href":"https:\/\/akaunting.com\/hc\/wp-json\/wp\/v2\/media?parent=1921"}],"wp:term":[{"taxonomy":"letter","embeddable":true,"href":"https:\/\/akaunting.com\/hc\/wp-json\/wp\/v2\/letter?post=1921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}