Which item would be classified as a current asset on a balance sheet?

• A. Office building
• B. Cash at bank
• C. Prepaid insurance
• D. Trade receivables

Answer: (B)

Current assets are resources expected to be realized as cash or used up within the next year. Cash at bank is the clearest example because it is already cash and available immediately for operations, with no waiting period. Prepaid insurance also falls under current assets in many classifications, since it represents a payment for future coverage that will be expensed over the coming period. Trade receivables are amounts owed by customers and are typically collected within a short time, so they are current assets as well. The office building, by contrast, is a non-current asset because its benefit extends over many years. In this context, cash at bank is the most straightforward current asset.