Which of the following is a current asset?

Accounts receivable is classified as a current asset because it represents money owed to a business by its customers for goods or services that have been delivered or used but not yet paid for. This amount is expected to be collected within one year, making it a liquid asset that can be readily converted to cash.

Current assets are essential for managing day-to-day operations and maintaining liquidity, as they are items that can be quickly turned into cash or are expected to be consumed or sold within a short timeframe, typically within a fiscal year.

In contrast, the other options listed do not meet the criteria for current assets. China, for example, refers to dishes or tableware, which are considered long-term assets if they are not intended for sale. Small equipment is classified as a fixed asset because it is used in the operations of the business over a longer period. Retained earnings, on the other hand, are an accumulation of profits that have been reinvested in the business rather than distributed to shareholders, and they are reflected in the equity section of the balance sheet, not classified as an asset.