What are current assets?

Current assets are defined as resources that a company expects to convert into cash or use up within one year or within its operating cycle, whichever is longer. This includes cash and cash equivalents, accounts receivable, inventory, and other short-term investments that are liquid and can be readily accessed.

Choosing the option that refers specifically to currency or currency equivalents that can be accessed immediately highlights that these assets are not only liquid but also available for operational needs without delay. This characteristic is essential for managing a company's short-term liabilities and ensuring operational liquidity.

The other options misinterpret the concept of current assets. For instance, assets that can only be converted to cash in the long term do not qualify as current assets since they cannot be readily liquidated for cash in the short term. Items above a specific monetary value are more related to asset capitalization policies and do not inherently define current assets. Finally, the inclusion of all assets, such as fixed and variable inventories, ignores the critical distinction between current assets and long-term assets, such as fixed assets, which are not expected to be converted to cash within the short-term timeline.