Short-lived items such as carpet, drapes, and water heaters are known as ___________.

The term that best describes short-lived items such as carpet, drapes, and water heaters is "reserves for replacement." These items do not have a long useful life and typically need to be replaced after a certain period due to wear and tear. In property management and accounting, it is prudent to set aside funds, or reserves, specifically for the future replacement of these types of items.

This approach ensures that the resources are available when the items need to be replaced, allowing property owners or managers to maintain the condition and value of their property. This contrasts with the other options where "current liabilities" refers to obligations that are expected to be settled within a year; "fixed assets" are long-term tangible items used in operations; and "inventory items" typically refer to goods held for sale or consumption rather than items that are at the end of their useful life and in need of replacement.