Which type of asset includes receivables and short-term investments?

Current assets are a category of assets that are expected to be converted into cash or consumed within a year. Receivables, which represent amounts owed to the business by customers or clients, fall under this category because they are expected to be collected in the short term. Short-term investments also qualify as current assets since they can be easily liquidated or converted into cash within the same timeframe.

This classification is critical for financial reporting and analysis, as it provides insights into a company’s liquidity and short-term financial health. In contrast, fixed assets are long-term investments like property and equipment; intangible assets include non-physical items such as patents and trademarks; and equity assets are typically associated with ownership in a company, representing shareholders' interests. Understanding these distinctions helps in evaluating a company’s financial statements accurately.