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Simple English definitions for legal terms
current funds
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A quick definition of current funds:
Current funds refer to the money that a person or organization currently has available to spend or invest. It includes cash, bank deposits, and other liquid assets that can be easily accessed and used for day-to-day expenses or short-term investments. Essentially, current funds are the funds that are immediately available for use.
A more thorough explanation:
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.