What is a current asset?
28 November 2022 (Updated 28 November 2022)
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In a nutshell
A current asset is a resource that a business owns and expects to use or sell within a financial year.
- Expected to be used or liquidated within a year.
- Not subject to depreciation.
- 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)