Which item is a current (short-term) asset?

Which item is a current (short-term) asset?

• A. Accounts receivable
• B. Patents and copyrights
• C. Domain name and trademark
• D. Property, plant, and equipment

Answer: (A)

Current assets are items a company expects to convert into cash or use up within one year or its operating cycle. Accounts receivable fits this category because it represents amounts customers owe that are typically collected in the near term, turning into cash relatively quickly. Patents and copyrights are intangible assets that provide value over the long term, not through quick cash conversion. Domain name and trademark are also intangible assets with long-term value. Property, plant, and equipment are tangible long-term assets used in ongoing operations and depreciated over many years.

Current assets are items a company expects to convert into cash or use up within one year or its operating cycle. Accounts receivable fits this category because it represents amounts customers owe that are typically collected in the near term, turning into cash relatively quickly.

Patents and copyrights are intangible assets that provide value over the long term, not through quick cash conversion. Domain name and trademark are also intangible assets with long-term value. Property, plant, and equipment are tangible long-term assets used in ongoing operations and depreciated over many years.