Legal Definitions - current funds

CURRENT FUNDS

Current funds refer to the amount of money that a company has available for immediate use in its daily operations. It includes cash, cash equivalents, and other assets that can be easily converted into cash within a year.

• A company's checking account balance
• Short-term investments that can be easily sold for cash
• Accounts receivable that are expected to be collected within a year

These examples illustrate how current funds are made up of assets that can be quickly converted into cash to meet the company's short-term financial obligations. For example, if a company needs to pay its employees or suppliers, it can use its current funds to do so without having to sell off long-term assets or take on debt.