The term “current asset” does not include

Current Assets:

• A current asset is an asset that a company holds and can be easily sold or consumed and further lead to the conversion of liquid cash.
• For a company, a current asset is an important factor as it gives them a space to use the money on a day-to-day basis and clear the current business expenses.
• In other words, the meaning of current assets can be explained as an asset that is expected to last only for a year or less is considered as current assets.

Types of Current Assets:

1. Cash and cash equivalent
2. Inventory/ Stock-in-trade
3. Ongoing projects
4. Pre-paid expenses
5. Account receivable/Payment
6. Marketable securities

The above mentioned are the obvious list of current assets that are taken into consideration to check the operation cycle of a company within one year.

Current Assets Formula:

Current assets=Cash+Cash Equivalents +Inventory+ Accounts Receivable+Market Securities+Prepaid Expenses+Other Liquid Assets

1. Fixed Asset: These are tangible or long-term assets that include buildings, land, fixtures, equipment, vehicles, machinery, and furniture.

Therefore, the term “current asset” does not include Furniture.