Definition of current assets

Current assets, also called current or liquid assets, are those that can be sold with speed, at a predictable price and without excessive or counterproductive cost.

For the economy There are different types of assets, including current or current, which can be easily sold since it does not involve a negative cost. Current assets are goods and rights that can be converted into money without further delay or consumed in a normal cycle of operations.

In the finance of a particular company or economy, we can speak of the assets, or the set of goods and rights with monetary value that are owned by a institution and that, therefore, are reflected in your accounting or balance.

Among the various assets with which a company can count you can find the fixed assets and the currents. The fixed asset does not vary during a cycle of exploitation normal or fiscal year. These assets are illiquid insofar as they require time and cost to be exchanged for money and, therefore, Thus, they imply a constant value for the company that cannot be altered quickly, neither positively nor negative. A fixed asset could be, for example, the real property of the institution in question.

Instead the current or current assets they do vary during the operating cycle and are maintained by a company with the purpose to be sold or transformed in more or less frequent or periodic operations. These are short-term rights or credits. For example, a current asset is the money in the company's cash, or its shares.

Both fixed and current assets are relevant values ​​for the balance sheet of a particular institution and account for the state of its accounting year after year. In the case of fixed ones because they are durable and in the case of current ones because they depend on the fluctuation of operations, the balance sheet of a company is composed as a product of this duality.

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