About Eldus » Accounting Glossary » Circulating Assets

Circulating Assets

The opposite to Fixed assets. Circulating assets describe those assets that turn from cash to goods and back again (hence the term circulating). Typically, you buy some raw materials, start to manufacture a product (the asset is called work in progress at this point), produce a product (it is now stock), sell it (it is now back to cash again).

Updated On: 04.04.01