These are items that can be converted
to hard cash within a business cycle. This part of the balance sheet is the
fuel for financing a company's operations, tells whether the company has enough
cash to burn for its day to day expenses without having to use debt to finance
its activities. These range from cash, commercial paper, treasury bills, real
estate to the goods they have in inventory such as bread, bananas, shirts or
anything that can be sold depending on the nature of the business.