current asset

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Related to current asset: Current liabilities

Current Assets

Cash and other assets expected to be converted to cash within a year. Examples include accounts receivable, prepaid expenses, and many negotiable securities. Current assets are calculated on a balance sheet and are one way to measure a company's liquidity. Current assets tend not to add much to the company's assets, but help keep it running on a day-to-day basis. See also: Fixed asset, Gross working capital.

current asset

Cash or an asset expected to be converted into cash within one year. In addition to cash, current assets include marketable securities, accounts receivable, inventories, and prepaid expenses. Current assets are typically not very profitable but tend to add liquidity and safety to a firm's operation. Also called gross working capital.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

References in periodicals archive ?

Going back to the example of the trading firm, that portion of its total debt which is covered by current assets is self-liquidating.

A fresh approach to financial gearing

However, that approach implies that CPLTD will be repaid from the conversion of current assets into cash.

The missing piece in liquidity calculations: why calculating the "current portion of fixed assets" would provide a more accurate picture of financial health

Current assets declined 5.4 percent, to $1.6 billion, while non-current assets were down 11.4 percent, to $1.3 billion.

Revenue, margins trend downward for nation's top 100 ag cooperatives

25] explained the basis of exiling prepaid items to the long-term category: "The item Prepaid Expenses is of little importance in analysing [sic] the balance sheet, except that it gives some information as to how the company's business is conducted." (31) The AIA's 1936 model current asset section is presented in Exhibit 6.

The Recognition and Valuation of Current Assets on the balance sheet in the United States, 1865-1940

[H.sub.03]: There is no relationship between Operating Profit Margin and Current Asset to Total Asset of Indian manufacturing companies of India.

Working capital management and firm's performance--a study of Indian manufaturing companies

If the enterprise decides to hold such securities for a long period, no matter whether they are purchased, acquired or transferred from other categories, they should be measured at fair value, classified as available-for-sale securities and reported in the balance sheet as current assets if their maturities are less than one year and as long-term assets if their maturities are more than one year.

SFAS 115: a flowchart approach

Credit analysts look at current assets as resources invested in assets that are closely linked to day-to-day operations.

The current and quick ratios: are they only window dressing?

In contrast to its current assets, a company's fixed assets frequently serve as the borrowing base for a term loan credit facility, where the amount is fixed for a period of time, there is an agreed-upon payment schedule and amounts paid cannot be re-borrowed.

Seeking financing? consider asset-based loans: two bankers explain why, when the economy is down, asset-based lending is up. (Financing for Growth: Special Section)

In 1999-2001, the company recorded an increase in sales but its current ratios declined such as current liability to current assets down from 165.3% in 2000 to 105.4% in 2001 as shown in the following table.

Pupuk Kaltim to issue bonds valued at Rp 600 billion. (Finance And Banking)

13, Presentation of Current Assets and Current Liabilities The revisions are consistent with the IASC Framework for the Preparation and Presentation of Financial Statements.

IASC revises two standards

Total assets were valued at QR21.59bn, comprising current assets of QR5.76bn and non-current assets of QR15.83bn.