Which of the following is an asset?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Prepare for the GMetrix Marketing Test. Utilize flashcards and multiple choice queries, with each query featuring hints and explanations to bolster your understanding. Excel in your exam preparation journey!

Multiple Choice

Which of the following is an asset?

Explanation:
Assets are resources a business owns or controls that are expected to bring future economic benefits. Accounts Receivable fits because it records money customers owe for goods or services already delivered, representing a future cash inflow. That expected cash makes it an asset, typically shown as a current asset on the balance sheet. By contrast, liabilities are obligations the company owes, a mortgage is a loan payable (a liability for the borrower and an asset for the lender), and equity is the owner’s claim on the assets after liabilities are settled. So Accounts Receivable is the asset in this list.

Assets are resources a business owns or controls that are expected to bring future economic benefits. Accounts Receivable fits because it records money customers owe for goods or services already delivered, representing a future cash inflow. That expected cash makes it an asset, typically shown as a current asset on the balance sheet. By contrast, liabilities are obligations the company owes, a mortgage is a loan payable (a liability for the borrower and an asset for the lender), and equity is the owner’s claim on the assets after liabilities are settled. So Accounts Receivable is the asset in this list.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy