{"id":25168,"date":"2023-10-13T12:48:11","date_gmt":"2023-10-13T12:48:11","guid":{"rendered":"https:\/\/swoopfunding.com\/us\/?post_type=business-glossary&p=25168"},"modified":"2025-04-24T14:08:06","modified_gmt":"2025-04-24T14:08:06","slug":"current-assets","status":"publish","type":"business-glossary","link":"https:\/\/swoopfunding.com\/us\/business-glossary\/current-assets\/","title":{"rendered":"Current assets"},"content":{"rendered":"
Current assets refer to a category of assets<\/a> on a company’s balance sheet<\/a> that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business. <\/span><\/p>\n Currents assets represent resources that are relatively liquid and can be used to meet short-term obligations<\/a> and operational expenses. Furthermore, they are often used as collateral<\/a> for short-term borrowing.<\/span><\/p>\n Common examples of current assets include:<\/span><\/p>\n Current assets are integral to a company’s working capital<\/a>. Effective management of working capital ensures that a company can cover its short-term financial obligations and operational expenses. A healthy proportion of current assets relative to current liabilities<\/a> suggests a company’s ability to meet its short-term obligations.<\/span><\/p>\n Current assets are prominently featured in a company’s balance sheet, which provides a snapshot of its financial position at a specific point.<\/span><\/p>\n Here’s a short example of current assets for a fictional company, XYZ Corporation:<\/p>\n Now, if you sum up these current assets:<\/p>\n Current assets = $100,000 + $150,000 + $80,000 + $50,000 + $20,000 = $400,000<\/span><\/span><\/p>\n In this example, XYZ Corporation has $400,000 in current assets, representing assets that are expected to be converted into cash or used up within the next operating cycle or one year.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"author":1,"template":"","class_list":["post-25168","business-glossary","type-business-glossary","status-publish","hentry"],"acf":[],"featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","image_blog":"","image_podcast":"","image_banking":"","image_blog_internal":"","image_blog_medium":"","image_single_banking":""},"post_excerpt_stackable_v2":" Definition Current assets refer to a category of assets on a company’s balance sheet that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business. What are current assets? Currents assets represent resources that are relatively liquid and can be used to meet short-term obligations and operational expenses. Furthermore, they are often used as collateral for short-term borrowing. Common examples of current assets include: Cash and cash equivalents: Physical cash, bank account balances, and highly liquid investments that can be converted to cash quickly. Accounts receivable: This represents…<\/p>\n","category_list_v2":"","author_info_v2":{"name":"root","url":"https:\/\/swoopfunding.com\/us\/author\/root\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/business-glossary\/25168","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/business-glossary"}],"about":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/types\/business-glossary"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/users\/1"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/media?parent=25168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What are current assets?<\/h3>\n
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Example of currents assets<\/h3>\n
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