Which of the following is considered a current asset?

The correct choice is inventory, which is classified as a current asset because it is expected to be converted into cash or used up within one year or within the company's operating cycle, whichever is longer. Current assets are crucial for a company's short-term financial health and liquidity, as they are typically liquid and can be utilized to fund day-to-day operations.

Inventory represents products or materials that a business holds for sale in the ordinary course of its operations. Since businesses purchase or produce inventory with the intention of selling it to generate revenue in the short term, it is essential for maintaining operational efficiency.

In contrast, property, plant, and equipment are long-term assets, as they are durable and provide value to the company over an extended duration. Long-term investments are also not considered current assets because they are held for more extended periods and are not expected to be liquidated within one year. Goodwill represents an intangible asset that arises when a company acquires another for a premium over its book value. It is a long-term asset and will also not be realized in the short term.

Thus, inventory stands out as the current asset among the options provided, emphasizing its role in a company’s operational liquidity and its capacity to generate revenue in the near term.