The current assets of the enterprise are an important part of financial assets

The definition of "Circulating assets of the enterprise" implies a lot of financial resources of the organization that ensure the formation and circulation of fixed assets. In other words, this concept characterizes a continuously moving set of assets. Thus, all working capital can be divided into two categories:

1. Production funds.

2. Funds of circulation.

Each of these components is responsible for certain areas. For example, the first group can be considered in the form of objects of labor used during the turnover of one production cycle. Here you can also include unfinished products, raw materials, auxiliary materials and components, and so on. The costs of used tools and tools are fully transferred to the value of the output. Of course, the formation of working capital of the enterprise occurs at the expense of the second group. It includes all the means that are interrelated with the auxiliary and servicing processes of circulation of goods. To this category, we can rightly refer both the products released but not yet paid by customers, and the financial means credited to accounts in all kinds of banks. The most vivid example of this kind can be finished goods produced by the enterprise, or a set of services provided by the organization.

Thus, the current assets of an enterprise are cash assets that are advanced in one of the two categories described above. It should also be noted an important feature of the represented funds: as already mentioned earlier, they are definitely involved in the production process, and their cost is fully compensated for by the products and services that are released.

Working capital of the enterprise is a group of assets that can conventionally be divided into three main parts:

1. Semi-finished products.

2. Production reserves.

3. Expenses of future periods.

In addition, the current assets of the enterprise are two categories, allotted depending on the source of formation. Due to this classification, borrowed assets and own reserves are singled out. At the same time, it must be remembered that if the second group is a fairly understandable structure, then the characterization of the former can cause some difficulties. So, the company's current assets are loans issued by the bank, as well as accounts payable.

It should be noted that some of the categories of revolving funds are subject to normalization. This group includes: warehouse stocks of finished products, work in progress and balances of previous periods, also stored in the warehouse of the enterprise. All other elements and articles of circulating funds do not need to be rationed. This traditionally refers to goods unloaded, but not yet paid by the buyers, as well as cash that is on hand during the day, and others.

Allocate the concept of current assets. This term is a means that are used during the course of a normal operating cycle or are repaid within a year.