Or circulating current assets are cash and those assets or rights that are expected to convert into cash or consume within the normal cycle of operations of the company. national magazine exchange For normal operating cycle means the average time that cash invested in raw materials are converted back into cash through the stages of production, sale and collection of accounts receivable, that in the case of manufacturing companies. In business enterprises, by its very nature, ignores the production process. If the normal operating cycle is less than a year, current assets are those assets deemed to be converted to cash or consumed in less than a year, if more than one year shall apply this criterion in the classification. It is customary to regard as a short term period of less than one year. The items most important current assets are cash, temporary investments (easily convertible into cash), accounts receivable and inventory or portfolio (raw materials, work in process and finished products).These items usually are called working capital. Of lesser importance within the group of current assets include prepaid expenses such as insurance and interest.