Why in case of Current Assests we are considering the whole amount in company's bank account or the entire investment in stock?



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In case of Liability, if we are saying that current liability is the part of whole liability for that time frame, then why in case of Current Assests we are considering the whole amount in company's bank account or the entire investment in stock by the company? Why not the amount for that specific time period or investment for the same time period?

1 Answer(s)


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Ayan, Its the same thing with assets as well. Any asset that can be liquidated to cash immediately is current asset and any asset that cant be liquidated immediately is under non-current asset.