Which of the following types of assets can generally be converted to cash within one year?

The correct answer is inventory because it is a current asset that can typically be sold or converted to cash within one year as part of the normal business operations. Businesses purchase inventory with the intention of selling it to customers, and the turnover rate for inventory can vary depending on the business model and market conditions.

In contrast, buildings, machinery, and land are generally classified as long-term assets or non-current assets. Buildings and machinery are used in operations over multiple periods and are not meant to be sold in the short term. They are depreciated over their useful lives, reflecting their gradual loss of value. Similarly, land is considered a long-term asset because it is not depreciated and is not expected to be converted to cash within a year’s timeframe. Thus, while inventory actively contributes to cash flow in the short run, the other options are held for longer durations and are not intended for immediate conversion to cash.