Which type of assets would be expected to be exchanged for cash within a year?

The correct choice is current assets, as these represent resources that a company expects to convert into cash or use up within one year or one operating cycle, whichever is longer. Current assets typically include cash and cash equivalents, accounts receivable, inventory, and short-term investments. The key feature of current assets is their liquidity; they are readily available to meet short-term financial obligations.

Understanding the nature of current assets is vital for assessing a company's financial health, particularly its ability to cover its short-term liabilities. Businesses rely on current assets to ensure operational efficiency and solvency, which is crucial for day-to-day activities.

In contrast, fixed assets are long-term investments such as property, plant, and equipment, which are used to generate revenue over several years rather than being converted into cash within a single operational cycle. Intangible assets, like patents and trademarks, also do not typically convert into cash within the short term, and long-term liabilities represent obligations due beyond one year, contrasting with the short-term focus of current assets.