Which assets are classified as current assets?

Current assets are those assets that are expected to be converted into cash or used up within one year. This category includes cash itself, accounts receivable (money owed to the business that is anticipated to be received within a year), and inventories that are available for sale.

In the context of the question, cash and accounts receivable are prime examples of current assets because they are integral to the business's liquidity, allowing it to meet short-term obligations. Inventories also align with this definition, as they are expected to be sold and converted into cash within the operating cycle of the business. Therefore, the components listed indicate assets that are efficiently aligned with the short-term operational needs of the business.

The other options do not fit the definition of current assets. Investments held for the long term are envisioned to be held for an extended period, while property and equipment are fixed assets that remain with the business for more than a year. These long-term assets help generate income over several periods but are not intended to be liquidated within the short term, hence not classified as current assets.