Other current assets (OCA) are those assets which are not classified as either cash or investments, but which are still considered to be liquid and capable of being converted into cash within one year. Common examples of OCA include accounts receivable, short-term loans receivable, and prepayments.
The term "other current assets" is used in contrast to "fixed assets", which are those assets which are not expected to be converted into cash within one year. While fixed assets may eventually be sold or otherwise converted into cash, they are not considered to be liquid in the same way as other current assets.
What are 3 types of current assets?
1. Cash and cash equivalents: This includes cash on hand, as well as any short-term investments that can be quickly converted to cash.
2. Accounts receivable: This represents money that is owed to the company by customers for goods or services that have been delivered.
3. Inventory: This includes any raw materials, finished goods, or work in progress that the company has on hand.
What are the 6 classes of assets?
There are six classes of assets: cash, receivables, inventory, investments, property, and equipment.
1. Cash: This includes currency, coins, and checking, savings, and money market account balances.
2. Receivables: This consists of amounts owed to the company by customers for goods or services that have been provided.
3. Inventory: This is the stock of goods that the company has on hand, ready for sale.
4. Investments: These are financial instruments that the company has purchased, such as stocks, bonds, and mutual funds.
5. Property: This includes both real property (land and buildings) and personal property (furniture, equipment, etc.).
6. Equipment: This includes machinery, vehicles, and other tangible assets that are used in the operation of the business.
Is Other current assets a quick asset?
Other current assets are typically items that can be converted into cash within one year. This includes items such as accounts receivable, inventory, and prepaid expenses. While other current assets are not as liquid as cash, they can still be converted into cash relatively quickly. Are other current assets included in current ratio? Other current assets are not typically included in the current ratio calculation. The current ratio is meant to provide a snapshot of a company's ability to pay its short-term obligations, so it only includes the most liquid current assets, such as cash and equivalents, accounts receivable, and inventory. What are the 5 categories of assets? The 5 categories of assets are:
1. Cash and cash equivalents
2. Investments
3. Property, plant, and equipment
4. Intangible assets
5. Other assets