Current Assets

Definition

All the assets on the business Balance Sheet that can be converted to cash within one year.

What It Means

Current assets are the means the business uses to fund its daily operations. Typical current assets include:

  • Cash
  • Short term investments
  • Inventory
  • Accounts receivable

In addition to paying the purchase price, the small business buyer needs to inject sufficient working capital to fund the current assets of the business.