Which of the following refers to assets that can be converted to cash within 12 months?

Current assets are defined as resources that a business owns and expects to convert into cash or use within a year. This category typically includes cash, inventory, accounts receivable, and other short-term investments. The ability to convert these assets to cash quickly is crucial for a company’s liquidity and financial health, allowing it to meet short-term obligations and operational needs.

In contrast, non-current assets are those that are not expected to be converted into cash within a year, such as long-term investments, property, and equipment. Intangible assets refer to non-physical assets like patents or trademarks that also don't have immediate cash value. Fixed assets, often considered synonymous with non-current assets, include tangible items such as buildings and machinery that are used in the production of goods and services over a longer duration. Thus, the focus on liquidity and the specific time frame of one year makes current assets uniquely positioned in financial terminology.