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 is a balance sheet account that represents the value of all assets that can reasonably expected to be converted into cash within one year. current assets include cash and cash equivalents, accounts receivable, marketable securities, prepaid expenses, debtors etc.

Detailed explanation-4: -A liquid asset is an asset that can easily be converted into cash in a short amount of time. Liquid assets include things like cash, money market instruments, and marketable securities.