What is a current asset?

In a nutshell

A current asset is a resource that a business owns and expects to use or sell within a financial year.

Key characteristics

• Expected to be used or liquidated within a year.
• Not subject to depreciation.

Examples

• Cash in the bank
• Inventory that will be sold to customers (products in a shop, food in a restaurant)
• Accounts receivable (payments due within a year)

Sources

• Current assets – Investopedia