[hayatienor]

What is the advantages of current asset more than current liabilities?

[pready]

A current asset is something you own or have a right to like Accounts Receivable or inventory. Accounts receivable is where a customer owes you money and Inventory is something that you sell for money.

A current liability is where you owe someone else or have to provide goods or services to a customer like Accounts Payable and Unearned Revenue. Accounts Payable is where you owe someone money like for utilities or a purchase you made on account. Unearned Revenue is where a customer paid for goods to be delivered at a later time or for services to be performed by you at a later time.

The ultimate goal of a current asset is to receive money within one year or one business cycle, while a current liability is where you will pay money within one year or business cycle.