What is Current Asset?

Legal Definition
In accounting, a current asset is any asset which can reasonably be expected to be sold, consumed, or exhausted through the normal operations of a business within the current fiscal year or operating cycle (whichever period is longer). Typical current assets include cash, cash equivalents, short-term investments, accounts receivable, stock inventory and the portion of prepaid liabilities which will be paid within a year.

On a balance sheet, assets will typically be classified into current assets and long-term assets.

The current ratio is calculated by dividing total current assets by total current liabilities. It is frequently used as an indicator of a company's liquidity, its ability to meet short-term obligations.
-- Wikipedia
Legal Definition
Any asset on the balance sheet with a final maturity of less than one year. Common current assets include cash, marketable securities (e.g., bonds, common stock, preferred stock, and other investments), inventory, and accounts receivable. Current assets generally exhibit a high degree of liquidity and can often be converted into cash very quickly, at a price near carrying value. See also current liabilities current ratio.