Balance Sheet And Its Asset Side( Part 2 of 3)
WHAT ARE CURRENT ASSETS? |
Current assets are assets:
|
Current Assets |
Description |
Cash |
Funds that are readily available for distribution. |
Marketable Securities |
Investments that are both readily marketable and expected to be converted into cash within one year |
Inventories |
Consists of raw materials, work-in-progress and finished goods. Aggregate of items either held for sale in the ordinary course of the business, in process of production for such sale, or soon to be consumed in production |
Accounts Receivable |
Amounts owed to the entity by its customers |
Prepaid expenses |
Assets paid in advance whose usefulness will expire in the near future |
Deposits |
Deposits are assets which are monies paid to landlord, government authorities and others. These monies are paid in advance but are recoverable in the near future. |
Other Debtors |
Amount owing by the entity’s non customers like staff advances, etc |
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