Business Arithmetic — Entrepreneurship STD 12 Commerce — Question

Current assets are those assets which are expected to get converted into cash or cash equivalents within a period of one year.Examples of current assets are:

1. Cash in hand/Cash at bank.
2. Marketable securities.
3. Bills receivables.
4. Debtors, etc.

Current liabilities refer to those liabilities which are payable within a period of one year. Examples of current liabilities are:

1. Bills payable.
2. Creditors.
3. Outstanding expenses.
4. Advances received from customrs, etc.