Current Assets:A current asset is an asset that a company holds and can be easily sold or consumed and further lead to the conversion of liquid cash. For a company, a current asset is an important factor as it gives them a space to use the money on a day-to-day basis and clear the current business expenses. In other words, the meaning of current assets can be explained as an asset that is expected to last only for a year or less is considered as current assets. Types of Current Assets:Cash and cash equivalentInventory/ Stock-in-tradeOngoing projectsPre-paid expensesAccount receivable/PaymentMarketable securitiesThe above mentioned are the obvious list of current assets that are taken into consideration to check the operation cycle of a company within one year. Current Assets Formula:Current assets=Cash+Cash Equivalents+Inventory+Accounts Receivable+Market Securities+Prepaid Expenses+Other Liquid Assets1. Fixed Asset: These are tangible or long-term assets that include buildings, land, fixtures, equipment, vehicles, machinery, and furniture. Therefore, the term œcurrent asset does not include Furniture.