Assets expected to be converted to cash within one year, such as cash and receivables.
For example, a wholesale distributor's current assets on its balance sheet include $40,000 cash, $95,000 in accounts receivable, and $130,000 in inventory — totalling $265,000 in assets expected to be converted to cash within the next 12 months.
Why it matters: They dictate a company's short-term liquidity; enough current assets are required to survive and fund the immediate cash cycle.
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