Final answer:
Accounts receivable is a current asset because it represents the money owed to a business by its customers. China, small equipment, and retained earnings are not current assets.
Step-by-step explanation:
Accounts receivable is a current asset because it represents the money owed to a business by its customers. It is considered a current asset because it is expected to be converted into cash within one year.
China, small equipment, and retained earnings are not current assets. China is a country and does not represent an asset, small equipment is a fixed asset since it is used for long-term business activities, and retained earnings is not an asset at all, but rather a component of stockholders' equity.