Balance Sheet And Its Asset Side( Part 2 of 3)


Current assets are assets:

  • that are expected to be realised in, or is held for sale or consumption in, the normal course of the enterprise’s operating cycle ; or

  • is held primarily for trading purposes or for the short term and expected to be realised with twelve months of the balance sheet date ; or

  • Is cash or a cash equivalent asset which is not restricted in its use

Current Assets



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


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 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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