Both accounts receivable and inventory balances are current assets. Short-term or current assets are applicable when calculating several important financial ratios, such as the current ratio ...

Liquidity is the ability of an asset to be converted to cash, and inventory is less liquid than short-term investments and accounts receivable. However, inventory is more liquid than long-term ...

Your balance sheet lists inventory as an asset, because you spend money on ... is tied up in inventory that you won't need in the short term, you may find yourself short on cash for expenditures ...

stock inventory, marketable securities, and prepaid liabilities. The current assets account is important because it demonstrates a company's short-term liquidity and ability to pay its short-term ...

These short-term assets could include the money a company will use to pay employees or buy supplies and the inventory it's currently selling to customers. Whether an asset is classified as a ...

Working capital is the amount of money a company would have left over for its operations if it paid off all of its short-term debts with its short-term assets. Working capital refers to the amount ...

If the asset holding period was a year or less, the gains are short-term and taxed higher at a taxpayer’s ordinary income tax rates, which range from 10% to 37%. The capital gains tax must be ...