Which of the following is a current asset?

• A. Cash
• B. Building
• C. Mortgage
• D. Revenue

Answer: (A)

Assets are categorized by liquidity, with current assets being those expected to be converted into cash or used up within one year (or the operating cycle). Cash fits this definition best because it is already cash and readily funds day-to-day operations, making it the most liquid current asset. A building, on the other hand, is a long-term asset because it provides value over many years. A mortgage represents a liability, not an asset, since it’s a debt. Revenue is income that increases equity but is not an asset on the balance sheet. In healthcare finance, other typical current assets include accounts receivable and inventories, while long-term assets include property and equipment. So cash is the clear current asset.