Other Current Assets as the name indicates are the current assets of the business but are different from ordinary current assets such as cash, securities and binds, accounts receivables, inventory in hand of the business and the prepaid assets. All these assets are the routine current assets of the business and they can be readily converted into cash whenever a business requires in a current business cycle that usually last for a year or for a quarter. Other current assets are also the part of the total assets of the business and are also listed in the balance sheet in the same way as the common assets of the business are listed in the balance sheet. The example of the other current assets can be the restricted cash and the restricted type of investments.
As we know that the current assets are those assets that can be liquefy in order to pay the short term liabilities of the business. These types of assets can be readily converted into cash when required by the business and are labeled as current as they available to pay the short term liabilities readily. The current assets are divided into a number of other sub categories that are also reported on the balance sheet. However there are other kinds of current assets that cannot be categorized and they are lumped in a generic category called other current assets.
The value of the other current assets of the company varies from one financial period to the other depending upon the financial stability of the company and the way of spending funds by the company. It is important for the company to measure the degree of materialization of these assets as they may disfigure the liquidity of the company. An example of other current asset can be the sale price of the land owned by the company that is ready to be sold in recent times.