Which of the following is NOT a typical example of a current asset?

Current assets are resources that a company expects to convert into cash or use within a year, and they are essential for managing short-term financial obligations.

Inventories, cash in the bank, and trade receivables are all considered current assets. Inventories represent goods that are available for sale, and they are expected to generate revenue within the operating cycle. Cash in the bank is the most liquid asset, readily available for use in business operations or obligations. Trade receivables represent amounts owed to the business by customers for credit sales and are expected to be collected within a year.

Trade payables, on the other hand, are liabilities, representing amounts the business owes to suppliers for goods and services received but not yet paid for. This group does not classify as a current asset because it is a financial obligation rather than a resource owned by the business. Thus, identifying trade payables as the option that is not a typical example of a current asset is accurate, as current assets and current liabilities are distinctly different categories on a balance sheet.