<p><a href="https://www.goforma.com/small-business-accounting/31-accounting-terms-concepts-you-need-to-know" target="_blank">Current assets</a> are assets that are convertible to cash in less than a year.</p>
Small Business Accountants
What are Current Assets?
Current assets are resources a UK business expects to convert to cash within 12 months of the balance sheet date. Typical current assets include bank balances, cash in hand, trade receivables, prepayments, and stock awaiting sale. They sit above fixed assets on the balance sheet and are a core input to working capital and liquidity measures such as the current ratio.
