what is the proper definition of current assets?
is this the correct definition
"current assets are those assets which are easily convertable into cash"
if yes then is cash a current asset? if yes then why?
Current assets are any assets that can be easily converted into cash within one calendar year. Cash is a current asset because cash is Money available immediately and is the most liquid of all short-term assets.
Regards
Nauman-ul-Haq
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by gumsum</i>
<br />what is te defination of current assets?
is this rite defination?
"current assets r thoese assets which r easily convertable into cash"
if yes thn is cash a current asset? if yes thn why ?
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This definition is for current assets other than cash.
ICAPians, the unparalleled..
yaar how cum this jaab aik cheez ha hee cash tu further cash mein kese convert ho gye i mean v can say this tht current assets is another name 4 cash tht n ve can say tht current assets is altimate result of cash n visen versa buttt .................
i canot get tht cash is current asset
assets from which all the economic benefit is reasonalbly expected to be derived within the next balance sheet date
Ice Blue
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According to my knowledge, current assets are thse that will benefit the company within one year or within one accounting cycle (whichever one is longer).
No codition exists for "easily convertible" bcoz it is a quaitative and relative term n has no properly defined definition of what actually is meant by "easily".
for example, inventory is less easily converted to cash as compared to our investments in portfolio but both r current assets. or, prepayments are also current assets but they never r converted into cash (they r expensed out as monthly charges etc.)
this second example explains why i used "benefit the company" only instead of saying "converted into cash"
well these r my concepts only, u may differ indeed )
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FARHAN
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