Revenue Is Current Asset
A current asset is any asset that will provide an economic value for or within one year.
Revenue is current asset. Current assets in this case would include the combined total of cash marketable securities receivables inventory and any prepaid expenses. Other current assets can include deferred income taxes and prepaid revenue. Service revenue refers to revenue a company earns from performing a service. Long term noncurrent assets are a company s long term investments that have a useful life of more.
The sales to current assets ratio is a financial calculation that can help you determine how efficiently a company is making use of its current assets to generate revenue. For accounting purposes revenue is recorded on the income statement rather than on the balance sheet with other assets.