What are Current Assets?

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what are current assets

What are Current Assets?

Current Assets are items on the balance sheet that are either cash or readily convertible into cash, usually within one year of the balance sheet date.

Current Assets Are Shown on the Balance Sheet

Current assets are included on the balance sheet, below fixed assets if the company owns any. Here is an example.

current assets
Example Accounts Limited have current assets of £171,700

In the example above current assets are made up of two lines – ‘debtors and cash’.  Commonly in accounting there will be a note provided in the notes to the accounts offering more information on what makes up the generic line named ‘Debtors’.  Here is the note to the accounts for Example Accounts Limited.

current assets note

Examples of Current Assets

Current assets are either cash or things readily convertible into cash, here are some examples of current assets:

  • Cash;
  • Stock;
  • Trade debtors;
  • Rent deposit;
  • Balances that other people and Companies owe;
  • Short term investments.