Examples of assets that are usually classified as current assets on a company’s balance sheet include:

- cash, which includes checking account balances, currency, and undeposited checks from customers (that are not postdated)

- petty cash

- cash equivalents, such as government securities which were purchased within 90 days of their maturity

- temporary investments, such as certificates of deposit maturing within one year of the balance sheet date, and certain other investments

- accounts receivable, or trade receivables, after deducting an allowance for doubtful accounts

- notes receivable maturing within one year of the balance sheet date

- other receivables, such as income tax refunds, cash advances to employees, and insurance claims

- inventory of raw materials, work-in-process, finished goods, manufacturing and packaging supplies

- office supplies

- prepaid expenses, such as insurance premiums which have not yet expired

- advance payments on future purchases

To be classified as a current asset, the amounts must be cash or be expected to turn to cash, be used up, or expire within one year of the balance sheet date. In the rare cases where a company’s operating cycle is longer than one year, the operating cycle time is used in place of the one-year time period.

To assist with the preparation of classified balance sheets, we have prepared the following balance sheet forms and templates:

Balance Sheet: Manufacturer – Corporation

Balance Sheet: Retail/Wholesale – Corporation

Balance Sheet: Retail/Wholesale – Sole Proprietor

Balance Sheet: Services – Corporation

Balance Sheet: Services – Sole Proprietor

About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years. He is the creator and author of all the content found on AccountingCoach.com. You can read 1,500 testimonials praising his ability to explain accounting in a way that anybody can understand.

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