Current assets refer to assets that can be converted into cash within one year or one business cycle. These assets are usually used to support the daily business activities of enterprises, including paying short-term debts, purchasing inventories and paying operating expenses. The following are some examples of current assets:

Cash and cash equivalents: Cash and cash equivalents are the most liquid assets, including cash, bank deposits, money market funds and other securities that can be converted into cash. These assets can be used to pay short-term debts or support daily business activities at any time.

Accounts receivable: Accounts receivable are the money that an enterprise has not received after selling goods or providing services to customers. These assets can usually be converted into cash in a short time, so they are considered as current assets. However, if the customer fails to pay the accounts receivable on time, it may lead to the risk of capital shortage for the enterprise.

Inventory: Inventory is the value of unsold goods or raw materials of an enterprise. These assets can usually be converted into cash in a short time, so they are considered as current assets. However, if the inventory cannot be sold in time, it may lead to the liquidity risk of the enterprise.

Prepayment: Prepayment is the money that an enterprise advances to a supplier in order to obtain better purchasing conditions or the trust of the supplier. These assets can usually be converted into cash in a short time, so they are considered as current assets.

Other receivables: Other receivables usually include loans or other payments provided by enterprises to suppliers or other partners. These assets can usually be converted into cash in a short time, so they are considered as current assets.

Short-term investment: short-term investment usually refers to securities or other investments that enterprises can sell within one year or one year. These assets can usually be converted into cash in a short time, so they are considered as current assets.

Available-for-sale financial assets in prepayments, other receivables and short-term investments: Available-for-sale financial assets refer to securities or other investments held by enterprises, and their value may change with market changes. These assets can usually be converted into cash in a short time, so they are considered as current assets.

Generally speaking, current assets are one of the most important assets in the daily business activities of enterprises. Understanding the types and characteristics of current assets can help enterprises better manage capital and liquidity risks, thus better supporting daily business activities.