What qualifies as a current asset?

Accounts receivable qualifies as a current asset because it represents money that is owed to a business and is expected to be collected within one year or within the business's operating cycle, whichever is longer. Current assets are essentially cash or assets that can be quickly converted into cash in the short term.

In contrast, long-term investments do not meet the criteria for current assets as they represent investments that are intended to be held for more than one year. Property owned by a business also does not qualify as a current asset since it is generally categorized as a long-term asset, given that it is not typically liquidated quickly. Lastly, the description "any asset over a year old" is misleading; assets can be considered current based on their expected time frame for conversion to cash rather than simply their age. Thus, accounts receivable stands out as the appropriate representation of a current asset.