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)


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


Learn accounting with the free app

Accounting Flashcards

Accounting Flashcards includes a translate button for English, Chinese, and Spanish.

Learn financial accounting using beautifully illustrated flashcards, coordinated lessons, and rich audio. Whether you are an aspiring CPA or IFRS expert, use this accountancy app to reach your goals. Even an aspiring chartered accountant or those reaching for the CPA Australia can benefit. Topics of accounting standards, equation, terms, ratios, and more are covered.


Get the PDF book here



« Back to Glossary Index