Which of the following defines a current asset?

A current asset is specifically defined as assets that can be converted into cash or consumed within a year or within the operating cycle of a business, whichever is longer. This category includes cash itself, accounts receivable, inventory, and other financial instruments that are expected to provide cash within that time frame.

Choosing the option stating that current assets are convertible into cash in less than one year aligns perfectly with this definition. It highlights the liquidity aspect of current assets, which is critical for a business's ongoing operations and financial health.

The other options do not accurately capture the essence of current assets. For example, assets that cannot be converted to cash are essentially long-term or fixed assets and therefore would not qualify as current assets. Similarly, assets owned for more than a year typically characterize long-term assets, rather than current assets. Lastly, assets that will be used in future projects might pertain to either long-term investments or operational assets, but do not fit the specific definition of current assets that emphasizes their liquidity and timeframe for conversion to cash.