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Current Assets

Definition - What does Current Assets mean?

Current assets are assets owned by an entity that have short-term or immediate maturity rates, as opposed to longer term maturity rates. One year is the typical cut-off point for maturity rates for current assets. Assets maturing after one year into the future are not considered current assets. In the context of the law, current assets are commonly listed on formal balance sheets for corporations or other entities.

Justipedia explains Current Assets

Current assets can include stocks, bonds, cash, inventory, finished goods, etc. They are basically things of value owned by a party. However, some assets take a long time to mature and thus do not qualify as current assets. For example, a company may invest in a $10,000,000 certificate of deposit that won't reach maturation for five years. So, this would not be a current asset. Current assets can be important for evaluating the worth of a business or an individual.

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