What are the Typical Items Reported as Current Assets?

Typical items in current assets of company's balance sheet are those which must be but sometime we may ignore due to ignorance. So, we are making following list of all these typical items which should reported in Current assets.



1. Account Receivables

This is the amounts which are due from our customers because we have supplied the goods or services. When we sell goods, we issue the invoices on this basis, we records all the accounts receivables. This is the part of our current assets.

2. Outstanding Revenue 

All the revenue which we have to receive but we have provided its services. So, this is earned revenue and it will the part of our current assets.

3. Advance Compensation 

When we give the advance compensation to our employees, it will become our current assets because we did not take the services from our employees.

4. Other Advance Expenses 

All other advance expenses which we have paid but not still due, will be the part of our current assets.

5. Advance Income Tax 

As per law, we pay the income tax on all the incomes which we have earned in previous year. So, current years' revenue will be taxable in next year. But if we pay advance income tax in current year, it will be our current asset.

6. Short Term Advances and Loan Given 

All given short term advances and loans which we have to get within one year, will be our current asset.

7. Short Term Investments 

All short term investments which will liquidate within one year, will be our current asset. In short term investments, we can include money market holdings, short-term government bonds or Treasury bills, marketable securities and commercial paper and other cash equivalent.

8. Inventory 

We show only closing inventory in current assets. All the inventory which are in hand at the end of year will be our current asset.

9.  Cash and Bank Balance 

All the cash in hand and all the cash at bank will be our current asset.