CURRENT ASSETS Definition

CURRENT ASSETS are those assets of a company that are reasonably expected to be realized in cash, or sold, or consumed during the normal operating cycle of the business (usually one year). Such assets include cash, accounts receivable and money due usually within one year, short-term investments, US government bonds, inventories, and prepaid expenses.

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CAPITAL EMPLOYED is the value of the assets that contribute to a companys ability to generate revenue, i.e., fixed assets plus current assets minus current liabilities.

BANK STATEMENT is a statement reporting all transactions in the accounts held by the account holder.

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