Current Assets Definition And Examples
Here we study about Current Assets Definition And Then its Examples. Previously, we study about Current Liabilities and its Examples . Current Assets And Current Liabilities are recorded in the Balance Sheet . Current Assets having life equal to one year or less. They are utilized during the Operating Cycle of the Business or within the Current Accounting Period. Examples are Cash, Accounts Receivable, Inventory, Accrued Revenue, etc. Types Of Curre nt Assets / Examples of Current Assets 1. Cash/ Bank Cash or Bank is our Current Asset. When the Company has cash in hand it is called Cash in Hand or simply Cash and when it is deposited into company’s account at Bank, then it is called Cash at Bank or simply Bank. Cash is used within the operating cycle of the business because an entrepreneur has to use Cash to meet daily expenses of the business to run the business smoothly and also it is used to improve the Working Capital of the busin...