Is a Loan a Current Asset?

A loan may or may not be a current asset depending on a few conditions.

A current asset is any asset that will provide an economic value for or within one year. If a party takes out a loan, they receive cash, which is a current asset, but the loan amount is also added as a liability on the balance sheet. If a party issues a loan that will be repaid within one year, it may be a current asset. If a party issues a loan that will be repaid after one year, it is not a current asset.