What are Current Assets?
Definition: Current assets represent all the assets of a company that are expected to be conveniently sold, consumed, used, or exhausted through standard business operations within one year.
In Plain English: Current assets are the things that add value to your company that can easily be turned into funds for your business.
Example: If you had $50 in cash and a $1M yacht, you would have $50 in current assets.
Why Should You Care?
Current assets are important to a business because they can be used to fund day-to-day business operations and to pay for the ongoing operating expenses.