Current assets is also referred to as the firm's net working capital. Current assets minus current liabilities equals the firm's net working capital. Net working capital is what resources the firm has left after paying it's current obligations. The current assets are presented on the balance sheet in order of liquidity. Cash, the most readily available asset for use in meeting obligations as they become due, is listed first.
Cash includes amounts on deposit in checking and savings accounts as well as cash on hand.
We should ask questions to determine if any of the cash is restricted. Restricted cash is unavailable for use as it would be tied up in compensating balances against outstanding loans or tied to outstanding letters of credit. If there is restricted cash then the amount should be deducted from the balance presented on the statement and restated. The next item is usually marketable securities that are intended to be liquidated in the near future. The position of marketable securities should be questioned so that we insure that it is properly placed on the balance sheet.