Current and Non-Current Assets Current assets are cash and other resources such as supplies or retail items that should be used during a business year or a company’s operating cycle which is the case with seasonal businesses such as beach stores and ski lodges. Current assets are part of the balance sheet that equals the sum of cash and things that can be considered cash such as: accounts receivable, inventory, marketable securities, prepaid expenses, stocks, bonds, etc. These all can be considered a current asset because they can be converted into cash in less than one business year. Creditors take into account a company’s current assets to ensure extending credit to the company is a smart business move on their end. Since these assets can be easily liquidated in case the company is forced into bankruptcy or worse going out of business. Current assets are defined as a “balance sheet account that represents the value of all assets that are reasonably expected to be converted into cash within one year in the normal course of business.” (Investopedia, 2012) Current assets include cash, accounts receivable, inventory, marketable securities, prepaid expenses and other liquid assets that can be readily converted to cash. Current assets are important to companies for day-to-day operations. Without strong current assets a business can run into cash flow problems which only cause more problems. This is the reason why assets are so important to a business. As long as a business can show that it has current assets creditors will setup cash flow accounts to help prevent cash flow problem which is one of the many ways in current asset values are used in business. A non-current asset is the opposite of current assets mainly because such items cannot be turn into cash quickly such as company vehicles, equipment, buildings, etc. “Noncurrent assets are capitalized