Current assets are resources that a company expects to convert into cash or use up within one year. These assets are essential for day-to-day operations and include items like cash, accounts receivable, and inventory. They help businesses manage their short-term financial obligations and maintain liquidity. Examples of current assets include cash, short-term investments, and prepaid expenses. By monitoring current assets, companies can ensure they have enough resources to cover immediate expenses and invest in growth opportunities. Proper management of current assets is crucial for maintaining a healthy financial position.