What are current assets?
Current assets are assets expected to be converted into cash or used within 12 months. They support short term operations.
What are examples of current assets?
Examples include cash, inventory, accounts receivable, and short term investments.
Why are current assets important?
They indicate liquidity and the ability to meet short term obligations.
How are current assets used in analysis?
They are used to calculate liquidity ratios such as the current ratio.
How do current assets differ from fixed assets?
Current assets convert to cash quickly, while fixed assets are long term resources.