A balance sheet item which equals the sum of cash and cash equivalents, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that could be converted to cash in less than one year. A firm's creditors will often be interested in how much that firm has in current assets, since these assets can be easily liquidated in case the firm goes bankrupt. In addition, current assets are important to most firms as a source of funds for day-to-day operations.