Current investments are considered part of cash and cash equivalents because they are highly liquid and are easily convertible into a known amount of cash. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less.

Current investments, such as short-term marketable securities or certificates of deposit, meet the criteria of being highly liquid and having a short-term maturity. As a result, they are included in the category of cash equivalents on a company's balance sheet. This classification allows for a more accurate representation of the company's overall liquidity position, providing a snapshot of assets that can be quickly converted into cash to meet short-term obligations or take advantage of investment opportunities.