Current assets include

Current assets include

• A. Cash, accounts receivable, inventory, supplies, prepaid expenses
• B. Land and buildings
• C. Long-term investments
• D. Intangible assets

Answer: (A)

Current assets are resources a business expects to convert into cash or use up within one year or the operating cycle. They are the most liquid items the company relies on to run day-to-day operations. Cash, accounts receivable, inventory, supplies, and prepaid expenses fit this category because they will either be used or converted to cash in the near term. In contrast, land and buildings are long-term assets used over many years and aren’t typically converted to cash quickly. Long-term investments and intangible assets also fall into noncurrent assets, as their value isn’t tied to the near-term cash needs of the business.

Current assets are resources a business expects to convert into cash or use up within one year or the operating cycle. They are the most liquid items the company relies on to run day-to-day operations. Cash, accounts receivable, inventory, supplies, and prepaid expenses fit this category because they will either be used or converted to cash in the near term. In contrast, land and buildings are long-term assets used over many years and aren’t typically converted to cash quickly. Long-term investments and intangible assets also fall into noncurrent assets, as their value isn’t tied to the near-term cash needs of the business.