What is meant by current assets?

• the value of all assets that can reasonably be expected to be converted into cash within one year in the normal course of business
• include cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other liquid assets that can be converted readily to cash.

Currents assets are all those tangible things which are or can be converted to cash and cash equivalents within one accounting cycle (normally one year). They include cash, short term investments, inventories, prepaids etc.