Current assets are those that can be reasonably converted to cash within 12 months. Examples are money in accounts receivable, inventory, notes receivable, and marketable securities.
Current asset management is a key process in the overall management of a business. We can define it as the capability of a business to keep cash or liquid assets equal to or greater than operating expenses. The process of managing a business’s current assets is essential in order for the business to operate for extended periods.
