What type of assets include cash and accounts receivable?

The correct choice is current assets because this category encompasses assets that are expected to be converted into cash or consumed within one year or within the company's normal operating cycle. Cash is the most liquid asset, readily available for use in operations or to settle obligations. Accounts receivable also falls under current assets, as it represents money owed to the company that is expected to be collected in the short term, typically within 30 to 90 days.

In contrast, noncurrent assets include assets that are not expected to be liquidated within a year, such as long-term investments and property. Fixed assets, a subset of noncurrent assets, refer specifically to tangible long-term assets used in the production of goods and services, like buildings and machinery. Intangible assets, on the other hand, consist of non-physical assets such as patents and trademarks. Since cash and accounts receivable are both short-term in nature, they are classified as current assets.