Types of Current Assets, either Operating and Non-operating
Let's see various possible Current Assets you can find in a Balance Sheet... as well as some operating and non-operating sub-typologies.
Current assets are assets that can be converted into cash or used up within a year or an operating cycle šš”
šLet's see a list of some common current assets that you may find in a balance sheet...
š¹ļøCash and cash equivalents
it includes cash on hand, bank deposits, and short-term investments.
āŖļøOperating: Petty cash, cash on hand, bank deposits, and cash held in special accounts for specific purposes (e.g., payroll, taxes, etc.).
ā«ļøNon-operating: Cash held for investment purposes, such as short-term investments in stocks, bonds, or mutual funds.
š¹ļøAccounts receivable
these are amounts owed by customers for goods or services sold on credit.
āŖļøOperating: Trade receivables (i.e., amounts owed by customers for goods or services sold in the ordinary course of business), unbilled receivables (i.e., amounts earned but not yet billed), and advances to customers.
ā«ļøNon-operating: Receivables from non-trade sources, such as tax refunds, insurance claims, or legal settlements.
š¹ļøInventory
it comprises goods held for sale in the ordinary course of business, including raw materials, work in progress, and finished goods.
āŖļøOperating: Raw materials, work in progress, finished goods, and supplies used in production or sold in the ordinary course of business.
ā«ļøNon-operating: Inventory held for investment purposes, such as precious metals or other commodities.
š¹ļøPrepaid expenses
which are payments made in advance for expenses that will be incurred in the future, such as rent, insurance, or taxes.
āŖļøOperating: Prepaid rent, prepaid insurance, prepaid taxes, and prepaid maintenance contracts related to the production or sale of goods or services.
ā«ļøNon-operating: Prepaid expenses related to investments or financing activities, such as prepaid interest or loan fees.
š¹ļøMarketable securities
they are short-term investments that can be easily bought or sold in the market, such as stocks and bonds.
āŖļøOperating: Short-term investments in marketable securities that are part of the company's working capital, such as commercial paper, certificates of deposit, or government bonds.
ā«ļøNon-operating: Long-term investments in marketable securities that are not part of the company's working capital, such as stocks or bonds held for investment purposes.
š¹ļøShort-term loans (made)
these are amounts due from borrowers that are expected to be collected within a year.
āŖļøOperating: Loans made to customers or suppliers in the ordinary course of business, such as short-term trade financing or working capital loans.
ā«ļøNon-operating: Loans made to unrelated parties for investment purposes, such as short-term loans to other companies or individuals.
š¹ļøNotes receivable
they are promissory notes from customers or other parties that are due within a year.
āŖļøOperating: Notes receivable from customers or suppliers for the sale of goods or services in the ordinary course of business.
ā«ļøNon-operating: Notes receivable from non-trade sources, such as loans made to other companies or individuals for investment purposes.
š¹ļøAccrued income
it's income that has been earned but not yet received, such as interest or rent.
āŖļøOperating: Accrued income from the sale of goods or services that have been delivered but not yet billed, such as work in progress or unearned revenue.
ā«ļøNon-operating: Accrued income from non-trade sources, such as interest or dividends earned on marketable securities held for investment purposes.
š¹ļøAdvances to suppliers
amounts paid in advance to suppliers for goods or services that will be provided in the future.
āŖļøOperating: Advances made to suppliers for the purchase of goods or services in the ordinary course of business.
ā«ļøNon-operating: Advances made to suppliers or other parties for investment purposes, such as advances made to support real estate investment research.
š¹ļøOther current assets
any other assets that can be converted into cash within a year, such as prepaid advertising, deferred tax assets, or deposits.
āŖļøOperating: Other current assets related to the company's core business operations, such as prepaid advertising, customer deposits, or deferred tax assets.
ā«ļøNon-operating: Other current assets related to investments or financing activities, such as deposits made for real estate purchases or advances made to acquire other companies.
