Sponsor Area

Financial Management

Question
CBSEENBS12004258

Define ‘Current Assets’ and give four examples.

Solution

It refers to the assets which are expected to get converted into cash or cash equivalents within a period of one year. Following are the examples of current assets:

(i) Cash in hand/cash at bank
(ii) Marketable securities

(iii) Bills Receivable 
(iv) Debtors.