BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Current assets are those assets which can be converted into cash or can be used to pay off liabilities within a time span of 12 months, i.e. one year. Some of the examples of current assets are cash, cash equivalents, inventories, debtors, bills receivables, etc.

Detailed explanation-2: -What’s the difference between current and non-current assets? Current assets are short-term assets that can be used up or converted to cash within one year or one operating cycle. Non-current assets are long-term assets that a company expects to use for more than one year or operating cycle.

Detailed explanation-3: -Current assets are resources that a company expects to sell or fully use for business operations within a year. A firm lists its current assets on its balance sheet and orders them by liquidity-first cash, then assets that can be converted into money within a year.

Detailed explanation-4: -Current assets are those that can be quickly converted into cash. This includes cash itself, as well as investments, accounts receivable, and inventory. Current assets are important components of your balance sheet and financial statements. Current assets are items that you expect to convert to cash within one year.

Detailed explanation-5: -Liquidity is the ability of an asset to get converted into cash in terms of time. Assets that can convert into cash within 12 months are considered current assets. It comprises inventory, cash, cash equivalents, marketable securities, accounts receivable, etc.