Assets expected to be converted to cash within one year.
Current assets are assets on a balance sheet that are expected to be converted to cash or used up within one year. They include cash, accounts receivable, inventory, and short-term investments. Current assets are listed first on the balance sheet because they represent the most liquid portion of the business. The current ratio (current assets divided by current liabilities) is a key solvency metric: a ratio above 1.0 generally means the business can cover short-term obligations. For individuals, current assets include cash in checking/savings accounts, money market accounts, and other funds available for immediate use. Understanding current assets helps assess financial liquidity—how quickly you can access cash if needed.