BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Current Assets is an account where assets that can be converted into cash within one fiscal year or operating cycle are entered.

Detailed explanation-2: -The operating cycle of a company may be over one year. In that case, they can classify an asset as a current asset (also called a current account) until they can convert it into cash within their operating cycle. This type of asset allows a company to use the money daily.

Detailed explanation-3: -Current Assets – Assets that can be realized (collected, sold, used up) one year after year-end date. Examples include Cash, Accounts Receivable, Merchandise Inventory, Prepaid Expense, etc.

Detailed explanation-4: -In most organizations, the key operating current assets are cash, accounts receivable, and inventory. Short-term assets that relate more to financing issues, such as marketable securities and assets held for sale, are not considered part of operating current assets.

Detailed explanation-5: -Current assets (also called short-term assets) are assets a business uses, replaces and/or converts to cash within a normal operating cycle (typically less than 12 months). It distinguishes them from long-term assets, those a business uses for more than a year.