An industrial flywheel. A flywheel is a rotating mechanical device that is used to store rotational energy. Flywheels have an inertia called the moment of inertia and thus resist changes in rotational speed. The amount of energy stored in a flywheel is proportional to the square of its rotational speed. Energy is transferred to a flywheel by the application of a torque to it, thereby increasing its rotational speed, and hence its stored energy. Conversely, a flywheel releases stored energy by applying torque to a mechanical load, thereby decreasing the flywheel's rotational speed.
Examples of current assets: cash, short-term investments (which include marketable securities), receivables (accounts receivable and notes receivable), inventories, supplies, and prepaid expenses (rent, insurance, advertising).
A basic concept in the non-profit world is the net asset. Stated simply, a net asset is assets less liabilities. Net assets also are called funds. Instead of showing retained earnings or owner's equity, the non-profit financial statements show net assets. Businesses classify net assets in three categories: unrestricted, temporarily restricted and permanently restricted.