What does the term "current assets" include?

The term "current assets" refers to items that can be liquidated or converted into cash within one year or within the organization's operating cycle, whichever is longer. This includes assets like cash, accounts receivable, inventory, and other short-term investments.

Current assets are crucial for assessing a company's liquidity and its ability to meet short-term obligations. The definition hinges on the time frame for conversion to cash, which is why option B accurately captures the essence of current assets.

In comparison, long-term investments and fixed assets represent longer-term resources that are not expected to be liquidated within a year, which aligns with the other choices that do not fit the definition of current assets. Expensive equipment and properties owned by the organization are both considered long-term assets as well; they contribute to a company's infrastructure and are not intended for quick cash generation.