Which accounts are generally included in short-term assets?

Short-term assets, also known as current assets, are assets that are expected to be converted to cash or used up within one year. The correct answer includes Accounts Receivable and Prepaid Insurance as both are typical examples of short-term assets.

Accounts Receivable refers to money owed to a company by its customers for goods or services delivered but not yet paid for. This account is critical for understanding a company's liquidity, as it represents cash that is expected to be received soon.

Prepaid Insurance is another example of a short-term asset, as it represents payments made for insurance coverage that will provide benefits over the next fiscal year. Although it is an expenditure, it is classified as a current asset because it will be consumed within the accounting period.

In contrast, other choices include accounts that do not fit the definition of short-term assets. For example, long-term investments and equipment are classified as long-term assets because they provide benefits over multiple years. Similarly, land and accumulated depreciation are associated with long-term assets, further affirming why they do not qualify as short-term. Accounts payable, while representing outstanding debts, are liabilities rather than assets, thus separating them from the definition of short-term assets.