The stability of development and economic efficiency of functioning enterprise depends on the rational management of its assets, among which have a special place in current assets

1. The essence of current assets, its importanceof establishing and functions.

To carry out economic activities, each enterprise must have certain property belonging to it on the rights of ownership or possession. All property that the enterprise has and that is reflected in its balance sheet is called its assets.

Assets represent the economic resources of an enterprise in the form of aggregate property values used in economic activities for the purpose of making a profit.

Current assets are assets that can be converted into cash in one production cycle or one year. As is known, all assets of the enterprise consist of basic, or permanent, and negotiable, or current. Current assets are the mobile part of the assets of an enterprise.

Current assets include material production stocks and costs, finished products, accounts receivable, cash. Being in constant motion, current assets ensure an uninterrupted production process. At the same time, constant and regular change of forms of value: from the money itturns into commodity, then into production, and again into commodity and monetary.

Current assets constitute a significant share of all assets of the enterprise. From the skillful management of them, the successful entrepreneurial activity of the business entity largely depends.

Financing of current assets in the organization can be implemented by using internal and external sources. In the first way, the organization takes bank loans and use equity and debt instruments if it is a joint-stock company. In the second way it uses internal sources as a result of profit by performance of organization.

And as a result of production process raw materials turn to finished goods and it is sold to costumers at this moment it is considered as Receivables after costumers pays for bought products it turns to cash or noncash form. Lastly organization buys raw materials and other necessary items for proceeding its performances. By this way organization can finance new producing cycle. Here given circulation process in the following figure:

Material production stocks



Finished goods

Cash



Receivables