Current Assets & Current Liabilities

Current assets are assets which are expected to be consumed or converted to cash within one year or the normal operating cycle whichever is longer

  • Cash and cash equivalents
  • trading securities
  • Accounts receivable and notes receivable
  • Inventories
  • Prepaid expenses
  • Short term investments
  • Cash surrender value of life insurance

Current liabilities are labilities which are expected to be paid within one year or normal operating cycle whichever is longer.

  • Accounts payable, Notes payable
  • Accrued expenses
  • Dividend payable
  • Payroll expenses due
  • Advances from customers

Leave a comment

Your email address will not be published. Required fields are marked *