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 business operations. For normal operating cycle means the average time that cash invested in raw material is converted back into cash through stages of production, sale and collection of accounts receivable, that in case of manufacturing firms. Alan Quasha In business enterprises, by its very nature, ignores the production process. If the normal operating cycle is less than a year, are considered current assets are those assets converted to cash or consumed within one year, if more than one year will apply this criterion in the classification. It is customary to regard as a short term period under 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 goods).These items usually are called working capital. Of lesser importance within the group of current assets include prepaid expenses such as insurance and interest.