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Current Assets refer to resources owned by a business that are expected to be converted into cash, sold, or used up within one fiscal year or operating cycle, whichever is longer. They represent assets that are readily available and can be used to meet short-term financial obligations as they come due. Examples of current assets include cash, marketable securities, accounts receivable, inventory, and prepaid expenses. Current assets are reported on a company's balance sheet and are typically listed in order of liquidity, with the most liquid assets appearing first. The classification of an asset as current is based on accounting principles and standards that provide guidelines for financial reporting.