First Known Use of current assets
Financial Definition of CURRENT ASSETS
What It Is
How It Works
Restricted cash (that is, cash that cannot be withdrawn or used for current operations), depreciable assets, receivables that are not due in 12 months or less, and land are examples of things that are not current assets.
Why It Matters
Current assets are important because they indicate how much cash a company essentially has access to within the next 12 months outside of third-party sources. It is indicative of how the company funds its ongoing, day-to-day operations, and how liquid a firm is. The ratio of current assets to current liabilities is particularly important in judging liquidity.
Learn More about current assets
Britannica English: Translation of current assets for Arabic speakers
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