current asset

current asset definition - business

current asset

Cash or an asset expected to be converted into cash within one year. In addition to cash, current assets include marketable securities, accounts receivable, inventories, and prepaid expenses. Current assets are typically not very profitable, but tend to add liquidity and safety to a firm's operation. Also called gross working capital.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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