What type of asset is categorized as Current Assets?

Current assets are defined as assets that a company expects to convert into cash or use up within one year or within its operating cycle, whichever is longer. Cash and cash equivalents fall squarely into this category, as they are readily available for use in a business's day-to-day operations. This makes them essential for meeting short-term obligations and managing liquidity.

In contrast, property, plant, and equipment represent long-term assets that are used in the operation of a business over several years. These are not intended to be liquidated in the short term. Goodwill is classified as an intangible asset and typically arises from acquisitions, representing the excess purchase price over the fair value of identifiable net assets, but it is not something that is expected to be converted to cash imminently. Similarly, intangible assets are long-term assets that include items such as patents and trademarks, which also do not fit the criteria for current assets due to their long-term nature. Therefore, cash and cash equivalents are uniquely suited for the current assets category, making them the correct answer.