What is the term for cash or other assets that will be converted into cash or consumed within one year?

The term for cash or other assets that will be converted into cash or consumed within one year is known as current assets. Current assets include items such as cash, accounts receivable, inventory, and other short-term investments that are expected to provide liquidity or be used up within the operating cycle or within a year.

This classification is essential in financial statements, as it helps assess a company's short-term financial health and liquidity position. Current assets are distinguished from long-term assets, which are resources a company plans to hold beyond one year, such as property, plant, and equipment, or intangible assets. In contrast, current liabilities would refer to obligations that the company expects to settle within one year, while fixed liabilities refers to commitments that extend beyond the short term. Understanding these terms is crucial for effectively analyzing financial statements and managing a business's operational finances.