List of Current Assets on Balance Sheet
Current Assets are the assets in the form of cash or other assets which can be converted to cash in less than one year. List of current assets on balance sheet includes liquid asset types which are as follows:
- Cash and Cash Equivalents
- Marketable securities
- Account receivables
- Prepaid expenses
- Non-trade receivables
- Other current assets
Let us discuss the list of current assets on Balance Sheet in detail –
#1 – Cash and Cash Equivalents
The first on the list of Current Assets is Cash and Cash Equivalent. Companies run their operations and generate cash from their sales. They keep some cash in the form of currency notes, coins, checks and petty cash which can be used to run their daily operations. Cash equivalents are money market instruments which are low risk and highly liquid i.e. they can be very easily converted to cash. Cash equivalents include money market mutual funds, treasury bonds, Certificate of deposits (CDs) and Commercial papers (CPs).
#2 – Marketable Securities
Marketable securities are the securities that are heavily traded on public exchanges. Marketable securities are of two types – Equity and debt securities. The buyers for these securities are readily available, hence they are current assets.
#3 – Account Receivables
Account receivables are the amount that the customers owe to the Company. The Company has provided the goods/services to the customers but the customers have not paid the Company for the goods/services provided by it. This is the amount of credit provided by the Company to its customers.
#4 – Inventory/Stock
Inventory is the material that the Company has in its stock. It refers to any material manufactured by the Company but not yet sold to the distributors/customers. Inventory can also include raw materials purchased by the Company and the semi-finished goods or work in progress inventory.
#5 – Prepaid Expenses
Prepaid expenses are the expenses done by the Company for goods or services which are yet to be delivered. If the Company has prepaid insurance, it will be accounted for in the prepaid expenses. Since the Company has already paid for the insurance before the period of insurance is over it is a prepaid expense. Rents paid by the Company for office space, factories and warehouses are also accounted in the prepaid expenses, since rent is generally paid at the start of the month or year if paid monthly or yearly respectively.
#6 – Non-trade Receivables
Non-trade receivables are the receivables to be paid by employees, vendors or other entities/persons for non-trade activities. Employees can owe loans or salary advances to the Company, vendors can owe the Company some prepaid deposits, tax authorities owe tax refunds, insurance claims by insurance Company are all examples of non-trade receivables. If these claims by the Company are to be matured or paid within one year, they are entered as non-trade receivables under current assets.
#7 – Other Current Assets
Other current assets include any other assets held by the Company which can be converted to cash in one year but cannot be classified under above-mentioned categories. Details of other assets held by the Company are generally provided in the notes to the financial statements.
List of Current Assets in Apple Inc
Consider the consolidated balance sheet of Apple.com for the year ended September 2018
Source: Apple Inc.
The total current assets of the Company increased by 2.09% from $ 128,645 Mn to $ 131,339 Mn in 2017 and 2018 respectively.
We note the following about Apple’s Current Asset List –
- The cash and cash equivalents in the case of Apple Inc. increased from $ 20,289 Mn to $ 25,913 Mn in 2017 to 2018 respectively.
- The investment in marketable securities for Apple Inc. decreased from $ 53,892 Mn to $ 40,388 Mn in 2017 to 2018 respectively.
- The net account receivables for Apple Inc. increased from $ 17,874 Mn to $ 23,186 Mn in 2017 to 2018 respectively.
- Inventories for Apple Inc. decreased from $ 4,855 Mn in 2017 to $ 3,956 Mn in 2018.
- Apple Inc. did not have any prepaid expenses.
- Apple. Inc. has vendor non-trade receivables of $ 17,799 Mn in 2017 which increased to $ 25,809 Mn in 2018.
- Apple Inc.’s other current assets decreased from $ 13,936 Mn in 2017 to $ 12,087 Mn in 2018.
Considering the current assets example of Apple Inc., we will discuss the list of current assets:
Current assets are an important part of the assets for the Company to remain liquid. They provide short-term funding to the Company for running operations on a daily basis and also to pay off their short-term liabilities (if any). A Company with higher current assets is generally stable and liquid.
This has been a guide to Current Assets List. Here we provide the overview and explanation of the list of Current Assets reported on balance sheet along with a practical example of Apple Inc. You can learn more about financing from the following articles –