What is defined as cash and other assets expected to be exchanged for cash or consumed within a year?

Current assets refer to cash and other resources that are anticipated to be converted into cash or consumed within one year. This classification is crucial for assessing a company's liquidity, reflecting its capacity to meet short-term obligations.

Current assets typically include items such as cash, accounts receivable, inventory, and prepayments. By focusing on assets that can be quickly turned into cash or used up within the operating cycle, stakeholders can evaluate the operational efficiency and short-term financial stability of a business.

The other categories listed do not fit this definition: long-term assets represent resources intended for use beyond a year, fixed assets refer specifically to tangible items like machinery and buildings used in operations, and investments may include a variety of financial instruments that can have different time horizons for liquidity or cash generation. Thus, the emphasis on the one-year time frame and the nature of the assets makes current assets the correct choice.