Current Assets

Currant. Yeah, it’s kind of a socialist raisin. They all look about alike.

But that’s a currant, and has nothing to do with current.

Note the "rent" part. Remember it like your rent comes due…soon. You rent a place for a year or less, usually. Or at least...that’s how long you lock in your rate. So if your asset is current, then it can be turned into cash within a year.

Example:

A bond coming due in a year or less. Companies store their cash all the time in short-term paper, like certificates of deposit, or bank CDs, which come due in less than a year. That’s a current asset. Companies buy these kinds of bonds so they get a little more interest than from their bank’s checking account.

They buy stocks as well. Shares of Googhle can be converted into cash quickly and easily. Shares in Google are a current asset.

Ounces of gold. Easily a current asset.

So what’s not current?

The 14,000 acres of solar panel land your company owns. If it ever had to sell it, there are very few buyers, and it likely would take more than a year just to figure out all the regulatory restrictions.

A big old factory? Can't sell that on Amazon…definitely not current.

Your brand equity (the relationship you've developed with consumers) is another noncurrent asset. You can't exactly go to the bank and convert brand loyalty to USD.

So that’s it. Current assets. They live on the left side of the balance sheet, way up top, in the good seats.

So put down those currants, stop ranting about the proletariat, and for God's sake...just buy some raisins.