This Current Assets Excel Template, is an educational resource that highlights where you would find the current account on a balance sheet. It gives you an example balance sheet with current assets highlighted. The current assets line item is a subtotal that sums up all of the assets that are expected to be converted into cash in the next year. It is less commonly known as the current accounts. These assets are commonly used to determine how liquid a company is. On the other hand, non-current assets are the long-term or capital assets on a company's book and usually consist of things like property, plant and equipment, intangible assets (trademarks, goodwill, patents), and other assets that have longer useful life. Examples of typical current accounts are:
  • Cash
  • Accounts Receivable
  • Cash Equivalents
  • Marketable Securities
  • Inventory

Liquidity Ratios

There are a few frequently used liquidity ratios which are calculated with the current accounts:   Cash Ratio is used to assess a company's ability to meet its short-term obligations without having to sell its other assets. The formula for calculating the cash ratio is as follows: Cash Ratio = Cash and Cash Equivalents / Current Liabilities   Quick Ratio (a.k.a. acid-test ratio) is a liquidity ratio used to measure a company's ability to fulfill short-term liabilities with its cash and current assets which can be easily converted to cash within 90 days. The formula for calculating quick ratio is: Quick Ratio = (Cash and Cash Equivalents + Marketable Securities + Accounts Receivable) / Current Liabilities   Current Ratio is calculated to determine a company's ability to meet both its short-term and long-term financial obligations. It looks at all of a company's current accounts and formula is as follows: Current Ratio = Current Assets / Current Liabilities

Learn More About Current Assets

Read CFI's guide to learn about the definition, calculation and examples of current accounts.
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