A current asset is an item on the balance sheet that is either cash, a cash-equivalent, or will likely be converted to cash within 1 year. It's generally what you expect to use to pay operating costs.
Some common examples of current assets are:
- Cash - the total amount of money on hand
- Accounts receivable - the amount your customers owe to you after purchasing goods or services
- Inventory - the total wholesale value of goods you have on hand that you intend to sell
- Prepaid expenses - expenses you have paid in advance