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).
In the accounting system, the firm's debts appear in two major categories: 1  Firstly, Accounts payable is classified as a Current Liabilities account. 2  Secondly, the other major liabilities account class, of course, is Long Term Liabilities.