In this article, we will provide a detailed list of current assets, along with explanations to help you grasp their importance in measuring a company’s liquidity and financial health.We also know current assets in the world of accounting. Current assets are the term for assets or wealth owned by a company that can be converted into cash. In other words, current assets are assets that can be measured in currency units.

This type of asset can be measured precisely with a currency value unit. Usually, current assets are the basic components of a company in carrying out its company activities.Because the company’s operational costs come from current assets that are easy to liquidate at any time. 

Current assets generally have 4 characteristics. These characteristics are as follows:

• easy to trade and use within less than 12 months.
• stored so that it can be traded again.
• relatively short disbursement, so that it can be generated within 12 months after the end of the balance sheet period.
• usually in the form of cash.

Complete List of Current Assets.

Cash

Cash or better known as cash and bank in accounting. Cash is used in company operations. Meanwhile, the remaining money in the account is called bank. In accounting, cash and bank can be used directly. The disbursement process is also relatively short.This is different from money stored in a checking account at a bank, which must wait for a certain date before it can be withdrawn. 

 Valuable Letters

Valuable letters are letters issued by an agency as proof of ownership of valuable assets.

The nature of these securities can be traded at any time so that cash can be obtained immediately. Here are various examples of securities such as:

• Monthly Deposit
• Bond
• Share
• Promissory note
• and other easily traded securities

Receivables

Receivables are bills to customers who buy goods on credit. Usually receivables are paid within a certain period of time.Payment terms have been agreed upon in advance by both parties.

Supplies

Inventory is the amount of goods that have not been sold and have economic value.So, if the goods are sold, the proceeds from the sale can fill the company’s cash flow.

Prepaid Expenses

Prepaid expenses are current assets because payments are made in advance by the company, so they do not burden the company at the end of the period.Obligations that have been paid in advance help the company to continue its economic activities without burdening the company’s current cash flow.Examples of prepaid expenses are insurance premiums, office stationery, and interest.

Account receivable

Companies that use credit transactions when selling their products or services will usually have accounts receivable. These accounts receivable can be collected by the company and become money. In addition to offering products on credit, companies can also use them as collateral when they need a loan.

Revenue receivables

In addition to trade receivables, companies can also have income receivables, namely income from the company that has been previously determined, but has not yet been paid by the party obliged to pay it.