Current assets

Current assets are those assets that are expected to be used (sold or consumed) within a year, unlike fixed assets. Current assets are shown on the balance sheet, and are listed in order of increasing liquidity (i.e. how easy they are to convert to cash). Usually stocks will be listed first, followed by debtors, with cash last.

The current asset position of a company is important, both for assessing its financial strength financial position (see current assets ratio) and for gauging its operational efficiency.

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