When using the current/noncurrent method, current assets are defined as

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The current/noncurrent method defines current assets as those that have a maturity of one year or less. This includes assets that are expected to be converted into cash within the next year, such as accounts receivable, prepaid expenses, and short-term investments. Inventory may or may not be included, depending on whether it is expected to be sold within the next year. Assets with a maturity of 90 days or less are typically classified as cash, which is a separate category from current assets.

When Using the Current/noncurrent Method, Current Assets Are Defined as