). Examples of current assets include: cash, accounts receivable, stocks, accounts receivable, inventory, prepaid expenses, short-term investments, and other liquid assets that can be converted into cash. Current assets are essential for individuals or organizations as they can be used as a fund to pay daily expenses and operational costs. Assets that cannot be transformed into monetary value within one year are excluded from this classification and are rather considered "long-term assets". Payment withholdings from customers that will be settled within the specified duration are classified under Customer Accounts. Most trade receivables are classified under current assets because they are expected to be paid within a year. On the other hand, if the account is never paid, it is classified as bad debt. Inventories may not be as liquid as other assets such as trade receivables. But inventory is also incorporated into current assets. Prepaid expenses are also classified as current assets not on the basis that they are liquid assets and can be converted into cash, but rather in light of the fact that they are cash arrangements for other business or organization needs. Examples of upfront expenses include: payments to contractors, insurance payments,