Is Cash a Current Asset? | Finance Strategists

Yes, cash is a current asset for accounting purposes. 

Current assets are any assets that can be converted into cash within a period of one year. This counts products that are sold for cash as well as resources that are consumed, used, or exhausted through regular business operations that are expected to provide a cash value return within a single year. 

Cash and cash equivalents are the most liquid of assets, making them more “current” than all other current assets. Cash of course requires no conversion and is spendable as is, once withdrawn from the bank or other place where it is held. Cash equivalents, such as certificates of deposit, are any type of liquid securities that are not in the form of cash currently, but that can be converted to cash instantly.