Which items would NOT be included in the current assets section of a balance sheet?

The current assets section of a balance sheet includes assets that a company expects to convert into cash or consume within one year or within its operating cycle, whichever is longer. Accumulated depreciation is not classified as a current asset because it represents the total depreciation expense that has been allocated to fixed assets over time, rather than an asset that can be readily converted into cash or utilized within a year. It is a contra-asset account that reduces the book value of fixed assets on the balance sheet rather than being an asset on its own.

In contrast, prepaid expenses, cash, and inventory are all current assets. Prepaid expenses can be recognized as an asset because they represent payments made for goods or services that will be received in the future, cash is the most liquid asset and readily available for immediate use, and inventory includes goods available for sale within the normal operating cycle of the business. All these items are expected to be utilized or converted into cash within the relatively short term, which clearly delineates accumulated depreciation from the other options.