Final answer:
The assets that can be converted into cash within one year or less are known as current assets. They include cash, marketable securities, inventory, and accounts receivable, distinct from long-term, fixed, or tangible assets like collectibles.
Step-by-step explanation:
The assets that can be converted into cash within a short period (generally one year or less) are known as current assets. These include items such as cash, marketable securities, inventory, and accounts receivable. In contrast, long-term assets are expected to provide economic benefits over a period longer than one year and include things like property, plant, and equipment. Fixed assets, a subset of long-term assets, are used in the production of goods and services (e.g., machinery) and are not readily convertible to cash. Tangible assets are physical items that have intrinsic value, such as equipment, buildings, and land; this category can also include collectibles such as paintings, fine wine, jewelry, and baseball cards, which provide value through use or potential resale value. However, these collectibles, while tangible, may not be easily convertible to cash and should not be expected to generate a high rate of return over the long term.