2 min read
Definition
Current assets sit on the balance sheet and include cash, trade debtors (money customers owe you), stock and short-term investments. They are the near-term resources available to meet current liabilities.
In plain terms
They are the "quick" side of your balance sheet — value that can become cash soon, as opposed to long-term assets like premises or equipment.
Why it matters for your company
Comparing current assets with current liabilities gives your working capital and current ratio. See reading your balance sheet.
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