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

2. Analysing current assets involving inventories, cash and debtors

It is noted that the production activities of the company along with the basic means should be provided with the objects of labor in the form of resources, raw materials, materials, energy, fuel, etc. When moving along the chain of technological process of production of products (works, services), there are successive transformations of production stocks into in-process components, semi-finished products and finished products (works, services). Finished products (works, services) are realized and the cycle (circuit) ends with the receipt of funds to the firm's accounts. Part of these funds will be used to finance current production and a new production cycle will begin.

Thus, within the production cycle, there is a consistent change in the natural-material form of the resources used.

However, this does not mean that the beginning of a new production cycle must necessarily be preceded by the completion of the current turnover of funds. In practice, the process of production is continuous, at each moment of time something is bought, manufactured, sold and again acquired, and this circumstance is an indispensable condition for the continuity of the production process.

Thus, current assets consist of circulating production assets and circulation funds.

Current assets are part of the financial resources of the enterprise. The totality of monetary funds invested in circulating production assets and circulation funds is called circulating assets. Current assets are cash advances to circulating production assets and circulation funds.