An example of a current asset would be what?

A current asset is defined as an asset that is expected to be converted into cash or used up within one year or within the operating cycle of the business, whichever is longer. Inventory fits this definition perfectly, as it consists of goods that a business intends to sell in the near term. Businesses typically purchase or produce inventory with the expectation that it will be sold to generate revenue, making it a key component of current assets.

On the other hand, patents represent intangible assets which have a longer life cycle, and while they may hold value, they are not expected to be converted to cash or used up within a year. Long-term investments and real estate also do not qualify as current assets because they are intended to be held for more than one year, reflecting longer-term investment strategies rather than immediate liquidity. Thus, inventory stands out as the correct example of a current asset in this context.