Final answer:
Prepaid expenses are the only items among those listed that would be classified as current assets on a balance sheet. Goodwill and long-term investments are not current assets as they are intended to benefit the company over a period longer than one year.
Step-by-step explanation:
Among the options given, only prepaid expenses would be classified as current assets on a balance sheet. Current assets are short-term economic resources that are expected to be converted into cash or used up within one year or the operating cycle of the business, whichever is longer. Prepaid expenses represent payments made in advance for expenses that will benefit more than one accounting period, and they are considered current because they will typically be used up or recognized as expenses within one year.
Goodwill is an intangible asset that arises when a company acquires another business at a price higher than the fair value of its net identifiable assets. It is not considered a current asset, as it does not have a physical presence and is not expected to be converted into cash within the upcoming year.
Long-term investments, as their name suggests, are meant to be held for a period longer than one year and, therefore, are not classified as current assets.