Total current assets definition

Total current assets is the aggregate amount of all cash , receivables , prepaid expenses , and inventory on an organization's balance sheet . These assets are classified as current assets if there is an expectation that they will be converted into cash within one year. A sample presentation of total current assets in a balance sheet appears in the following exhibit.

The total amount of current assets is frequently compared to total current liabilities , to see if there are sufficient assets available to pay for the obligations of a business.