Accounting divides your company assets into two classes: current and long-term. Current assets include cash and anything you use up or convert to cash over the next 12 months. Typical examples are ...

Quick ratio: Calculated by dividing current assets (excluding inventory) by current liabilities. By excluding inventory, the ...

In simple words, an asset is something of value that you own and can convert to cash. Your car is an asset and so is your house because you could sell either one and receive its value in cash.

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...