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.

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What are Current Assets? - Current Asset Definition - GoForma Small Business | UK Accountants & Tax Advisors
This article is part of our Small Business Accountants guide — your essential resource for running a small business.

<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>

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