Which of the following is NOT listed as a current asset in working capital?

• A. Equity
• B. Inventory
• C. Customers
• D. Cash

Answer: (A)

Current assets are resources the business expects to convert into cash or use up within a year, and they form part of working capital. Items like cash, inventory, and amounts owed by customers (debtors) are typical current assets. Equity represents the owners’ claim on the company and the funds invested or retained in the business; it’s part of the financing side, not a resource the business uses or converts to cash within a year. So Equity is not listed as a current asset. Cash, inventory, and customers are current assets because they are either already cash or will be converted to cash within the operating cycle.