An example of a current asset is ___________ .

A current asset refers to any asset that is expected to be converted into cash or used up within one business cycle, typically within a year.

Cash is a prime example of a current asset as it is already liquid and can be used immediately for business operations. Inventory also qualifies as a current asset because it consists of goods that are intended for sale in the ordinary course of business, and these goods will generally be sold and converted into cash within a relatively short period.

Real estate, on the other hand, is typically classified as a long-term asset because it is not expected to be converted to cash quickly and is held for longer periods to generate income or appreciate in value.

Given this understanding, both cash and inventory are current assets, making the choice that includes both correct.