Current assets are the most liquid of all assets found on a business’s balance sheet. You’ll see all the assets we mentioned above included in this section of the balance sheet. Current assets are important for two reasons. First, they help a company meet its short-term obligations. Current liabilities are […]
Let’s look at an example of calculating inventory for a roofing company. In this case, inventory could consist of raw materials, like wood shingles, and work in progress would be roofs/panels under construction. Short-term investments, or liquid securities, are financial instruments that you hold for 1 year or less. Your […]
Current assets are assets that can be converted into cash within one year. These include accounts receivable, inventory, and any other liquid asset. A company’s financial position is important, so current assets are a vital part of any business. They are also used to calculate a company’s current ratio. Which […]
