“Current assets are assets that a company expects to convert to cash or use up within one year” (Kimmel, Weygandt, & Kieso, 2007, p. 49). Supplies or accounts receivable are current assets since supplies are expected to be used within one year, and accounts receivable are expected to be collected within one year.
According to the text, common types of current assets are:
2. Short-term investments
5. Prepaid expenses
“Current assets are assets that a company expects to convert to cash or