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What is meant by current assets?

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Question added by SREEDEVI SUNILKUMAR , Business finance officer , Emirates Airline
Date Posted: 2014/04/06
Aziz ur Rehman ur Rehman
by Aziz ur Rehman ur Rehman , Assistant Manager Finance , Central Power Puchasing Agency (CPPA)

  • the value of all assets that can reasonably be expected to be converted into cash within one year in the normal course of business
  • include cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other liquid assets that can be converted readily to cash.

Anayatullah Tahir
by Anayatullah Tahir , Finance Manager , Etqan Projects

Currents assets are all those tangible things which are or can be converted to cash and cash equivalents within one accounting cycle (normally one year). They include cash, short term investments, inventories, prepaids etc.

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