What are the four most important items found in the current assets section of a balance sheet according to the chapter on Short-Term Finance and Planning?

Key points

• Current assets are expected to convert to cash within one year.
• Items are listed in order of accounting liquidity.
• Cash and cash equivalents are the most liquid current assets.
• Marketable securities can be quickly sold for cash.
• Accounts receivable represent money owed by customers.
• Inventories are goods available for sale.