Which of the following is a Current Asset?

Current assets are those assets that are expected to be converted into cash or used up within one year or within the business's operating cycle, whichever is longer. They are essential for managing day-to-day operations and ensuring that a business has enough liquidity to meet its short-term obligations.

Cash held in the bank is a quintessential example of a current asset. It is readily available for use and can be utilized immediately to pay for expenses, purchase inventory, or cover other short-term liabilities. This high liquidity makes cash a crucial component of a company’s working capital.

In contrast, buildings, machinery, and land are categorized as non-current or fixed assets. These assets provide long-term value to the business, typically having a useful life exceeding one year. They are not intended to be quickly converted into cash and are instead used in the production of goods or services and to operate the business over an extended period.