102500 Stickney, Weil, Schipper, &. Francis (2009) have highlighted that current assets are recorded in the balance sheet of the company. They represent those assets that are used to generate income for the business. Life of current assets is short i.e. less than one year. The values of these assets change frequently with business operations. Current assets are easily convertible to cash as compared to noncurrent assets. A company could utilize its current assets for meeting the requirements of the business that is to be handled or controlled on an urgent basis. Stickney, Weil, Schipper, &. Francis, (2009) reflect that currents assets include raw materials and cash and cash equivalents that are directly used in the day-to-day operations of a business. Current assets are easily convertible to cash and they appear on the balance sheet separately in the section that provides complete information on current assets of the company (Stickney, Weil, Schipper, &. Francis, 2009). Current assets of the company are used for the operations of the business. Account receivables of the company must reflect the amount that is recoverable by the company (Alexander &. Britton, 2004). Stickney, Weil, Schipper, &. Francis, (2009) also indicated that there is a sequence for the list of current assets in the financial statement that reflects the liquidity status of these assets. The company should record cash and cash equivalents first and then the bank balance of the company. Account receivables of the company should appear in the third row and inventory held by the company should appear in the fourth row. Other prepaid expenses including supplies, utilities and taxes should appear in the other rows of the list. A sequence is a standard form of recording current assets in the financial statements of the company (Stickney, Weil, Schipper, &. Francis, 2009). Alexander &. Britton (2004) have represented the view that it is essential that the financial statements of the company should reflect a true and fair view of the company’s financial position.