The cash or other assets that can be easily converted into cash within an accounting Period are known as current assets. These assets are held for a short period of time i.e.Generally one year. Current assets are also known as floating or circulating assets.Cash, bank balance, marketable securities, prepaid expenses, inventory, bills receivable, account receivable, debtor, accrued income, etc. are the examples of current assets. These asset denote the liquidity position of the business firm.
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