The aggregate amount of the assets owned (and controlled) by an entity such as cash, cash equivalents, accounts receivable, inventory items, prepaid expenses and deposits paid.
Being part of an entity’s assets, current accounts appear on the statement of financial position (balance sheet) as the overall amount of all assets (and broadly economic resources) that are expected to be converted into cash within one year (current assets).
Current accounts are also known as total current assets.
Comments