Which of the following is an example of a noncurrent asset?

Real estate is classified as a noncurrent asset because it is a long-term investment that a company intends to hold for more than one year. Noncurrent assets are typically not expected to be converted into cash or consumed within one year, which is the primary distinction between them and current assets. Real estate, being a physical property, provides value to the organization over an extended period, often appreciating in value and contributing to long-term business operations.

In contrast, cash, short-term investments, and inventory are considered current assets. Cash is the most liquid asset, readily available for immediate use. Short-term investments are expected to be liquidated within a year, and inventory is typically held for sale in the short term as part of operational activities. These characteristics place them in the current asset category rather than among noncurrent assets.