sajad torkamani

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