current asset

  

Definition

An asset such as receivables, inventory, work in process, or cash, that is constantly flowing in and out of an organization in the normal course of its business, as cash is converted into goods and then back into cash. In accounting, any asset expected to last or be in use for less than one year is considered a current asset. Also called circulating asset.

Use current asset in a sentence

  • When you are trying to figure out what your net worth is you should accurately assess the price of your current asset.

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  • I looked and saw that our current asset standing was good and cash had a great flow within our brand new company.

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  • You should always try to have a good current asset available for sale in case you need some liquidity quickly.

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