What are current assets what kinds of item can you find in the workplace that could be considered to be current assets?
Current assets are those assets that can be easily converted into cash within a short period, generally within one year. These assets are expected to be used up, sold, or converted into cash within the normal operating cycle of a business. Some examples of current assets that can be found in the workplace are:
1. Cash and Cash Equivalents: This includes currency, coins, checks, and any other form of legal tender available in the company's cash register, cash drawer, or bank accounts.
2. Marketable Securities: Investments such as stocks, bonds, mutual funds, or Treasury bills that can be easily sold or converted into cash.
3. Accounts Receivable: Money owed to the company by customers or clients for goods or services provided on credit.
4. Inventory: The value of the finished goods, work in progress, or raw materials held by the company for manufacturing, sale, or consumption.
5. Prepaid Expenses: Payments made in advance for goods or services that will be consumed or utilized within the next year, such as prepaid rent, insurance, or subscriptions.
6. Short-term Investments: Investments or securities that will be converted into cash within one year, such as certificates of deposit (CDs) or money market funds.
7. Marketable Products: Finished goods or products that are ready for sale or currently in the process of being sold.
8. Supplies: Physical items used in the day-to-day operations of a business, such as office supplies, stationery, or cleaning materials.
It's important to note that the specific current assets present in a workplace can vary depending on the nature of the business and industry.