What Is a Current Asset?

Current assets (Current Assets) refer to assets that an enterprise can realise or use within a business cycle of one year or more. It is an essential component of enterprise assets. In the turnover transition of liquid assets, it starts with the currency form, changes its form in turn, and finally returns to the currency form (monetary funds reserve funds, fixed funds production funds finished product funds monetary funds), various forms of funds and production Combining tight circulation, fast turnover and strong liquidity. Strengthening the audit of current assets business is conducive to determining the legitimacy and compliance of current assets business, it is helpful to check the correctness of current assets account processing, expose its shortcomings, and improve the efficiency of current asset use.

Current assets

The contents of current assets include monetary funds,

Current assets are greater than

1. The occupation pattern of current assets is volatile;

2. The amount of current assets occupied is volatile;

3.Circulation and production of current assets

From different perspectives, there can be different classifications. Moreover, different industries also have different composition of current assets.

(I) The role played by current assets in the production and operation of enterprises

1,

1. Conducive to the smooth progress of production and operation activities of enterprises;

2. Conducive to improving enterprises

1. The combination of asset liquidity and asset profitability;

2,

Due to the complex shape of current assets and the heavy workload of assessment and verification, many projects often adopt the practice of audit first and then evaluation. It is precisely because of the diversity of current assets that the methods of inventory verification and the issues to be considered in determining the valuation are different, so the quality control of current assets is also diverse. Can achieve the current assets from the following aspects

Current assets and liquidity

Liquidity is the funds that enterprises occupy on current assets in the process of production and operation. It has the characteristics of short turnover period and volatile form. It is corporate property that can be taken out at any time and can be turned around in a short period of time. Monetary funds include: cash, bank deposits, and other monetary funds. Current assets include: monetary funds, short-term investments, bills receivable, dividends receivable, interest receivables, accounts receivable, other receivables, prepayments, receivables Subsidies, inventory, amortized expenses, long-term debt investments due within one year, and other current assets.