Current assets: Resources expected to be used or converted into cash within one year of the balance sheet date (or longer if operating cycle is greater than a year)
Examples:
Cash and cash equivalents: Currency and cash accounts with an original maturity 90 days or less
Accounts receivable: Cash customers owe a business
Inventory: Materials used to make products Prepaid expenses: Expenses paid in advance
Investments: Purchased for financial gain
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Recommended Tools
One of your top priorities as a small business owner is keeping a close eye on the money you bring in and pay out, which is why it’s critical to have the right accounting software. You need a program that helps you accomplish your daily accounting tasks. Here are our best picks for tools we recommend and use.
