Which of the following is an asset. Tangible assets have physical substance.

Which of the following is an asset Apr 24, 2025 · Current assets is an account on a balance sheet that represents the value of all assets that could be sold or liquidated into cash within one year. Question: 14. Assets are the result of selling products or services to customers. Increases in stockholders' equity as a result of selling services or products to customers are known as a. inventory. Owners and/or creditors finance the assets of Which of the following is true about assets? Aug 16, 2023 · Capital assets are generally what you own including your home, personal property and investments. Which is listed first on a financial statement? a. The assets also need to be depreciated over the course of their useful lives. From the given options, the accounts that would be considered assets are: Supplies: This is a current asset because Question: All of the following are current assets except Question content area bottom Part 1 A. Sep 29, 2020 · A capital asset is an asset that has a useful life longer than one year and is not intended for sale during the normal course of business. Assets can be recorded at the market value if acquired at a bargain. Jun 24, 2025 · An asset is a resource controlled by the company as a result of past events and from which future economic benefits are expected to flow to the company. Definition of Assets: Financial accounting has basic elements like assets, liabilities, owners' equity, revenue, expenses and net income (or net loss) which are related to the economic resources, economic obligations, residual interest and changes in them In this exercise, we are asked which of the following is NOT an asset. Study with Quizlet and memorize flashcards containing terms like Which of the following is TRUE of assets? Select one: a. They are usually presented in order of liquidity on the balance sheet and include cash and cash equivalents, accounts receivables, inventory, prepaid, and other short-term assets. C) net working capital. Tangible assets lack physical substance. Expensing repairs and maintenance costs. Assets are recorded on the balance sheet and are considered valuable resources that the company uses to generate revenue. Study with Quizlet and memorize flashcards containing terms like Which of the following correctly describes the basic accounting equation?, Property is an example of a (current/long-term) asset account because it typically takes (less/more) than one year to convert property into cash. Intangible assets are normally classified as current assets. B) Certifying the ethical accuracy of the financial Study with Quizlet and memorize flashcards containing terms like Which of the following would be classified as a current asset?, Distributions by a corporation to its stockholders are called, Which of the following decreases owners' equity? and more. Jan 6, 2025 · Conclusion Assets are the backbone of any business, forming the foundation for operations and growth. Assets include Cash, Merchandise Inventory, and Accounts Payable. Notes Payable b. Clarify the relationship between assets and owner's equity: When assets are acquired, they do not directly decrease owner's equity. The correct definition of an "account" includes which of the following? Multiple choice question. What are the Characteristics of a Capital Asset? According to the major accounting frameworks, a capital asset has the following characteristics: An asset is a resource controlled by the company as a result of past events and from which future economic benefits are expected to flow to the company. Failing to record asset disposals. Intangible assets include the right to receive cash or cash equivalents at a future date. Learn about short- and long-term obligations in financial and legal contexts. Study with Quizlet and memorize flashcards containing terms like Which of these statements is not one of the financial statements? statement of cash flows balance sheet statement of owner investments income statement, Working capital is an indication of the firm's ___________, Which of the following statements is true? Tangible assets lack physical substance Tangible assets will be consumed in Study with Quizlet and memorize flashcards containing terms like Plant assets, Intangible assets, Current liabilites and more. Study with Quizlet and memorize flashcards containing terms like All of the following statements are true except one. Step 4: Identify the correct statement. All property is considered a capital asset EXCEPT those explicitly defined as not. If a company’s operating cycle is longer than one year, the length of the operating cycle is used in place of the one-year time period. \geoquad c. An asset is considered a current asset if it is anticipated to be sold, consumed, or converted into cash within a year or the business' operational cycle, whichever is longer. Investments are assets since they are economic resources with probable future benefits. Study with Quizlet and memorize flashcards containing terms like Horizontal analysis, external financial reporting, True and more. Other provided statements contain inaccuracies about the definition and ownership of assets. (NOT BUSINESS OR STOCK-IN-TRADE). , Which of the following is an asset account? A) Notes Payable B) Unearned Revenue C) Wages Payable D) Accounts Receivable, Which of the following is a liability account? The ledger accounts are the separate records of the business transactions carried by an entity prepared using the reference of the daily journal entries and are related to a specific account, which can be an asset or a liability, capital or equity, expense, or revenue item. Assets are not increased as a result of selling products or services to customers. Study with Quizlet and memorize flashcards containing terms like Plant assets represent, plant assets, Plant assets include all of the following except and more. This balance is Study with Quizlet and memorize flashcards containing terms like What is a fixed asset?, What is an example of a fixed asset?, What is another name for fixed assets? and more. Building d. c. B) net capital spending. It includes any form of currency that can be readily traded including coins, checks, money orders, and bank account balances. By understanding the different types of assets, their characteristics, and how they’re managed, businesses can ensure financial stability and long-term success. Assets do not need to provide future benefit to the business Jul 2, 2025 · A liquid asset is one that can be easily converted into cash within a short amount of time. Aug 19, 2025 · Discover what liabilities are, their types, examples, and how they differ from assets. It is the retailer's total productivity divided by net sales. Every asset is associated with a corresponding liability, creating a balance in the accounting equation. b) an asset that a company expects to convert to cash or use up within one year. Unearned revenue, sometimes referred to as deferred revenue, is payment received by a company from a customer for In this article we will discuss about Assets:- 1. 5:1 ratio. An asset is something of value that you own and can use to produce something. Accounting is an information system that measures, processes, and Sep 26, 2022 · Depreciable property is an asset that is eligible for depreciation treatment in accordance with IRS rules. Characteristics of Assets 3. If you’re struggling, you can always just click the Show Correct Answers button. , The term _______ means to record an expenditure as an asset. b) property, plant, and equipment. Discover how patents, brand names, and intellectual property add value beyond the balance sheet. \geoquad b. Prepaid expenses are assets because they represent services or goods that the company has Assets that are expected to be converted to cash, sold, or used up during the next 12 months, or within the business's normal operating cycle if the cycle is longer than a year, are called ________ assets. Jun 28, 2020 · A current asset is an asset that is easily converted to cash or expected to be converted to cash within a fiscal year or operating cycle. Asset values are never reduced in value due to physical deterioration. It is a good question b Sep 22, 2025 · Solution For Which of the following is a current asset? Select one: a. They are expected to provide future benefits, and can include cash, inventory, investments, and property. Refresh the page if you want to start again. Which of the following statements is correct regarding the land? A. Mar 11, 2025 · What would qualify as an asset? Personal assets can include a home, land, financial securities, jewelry, artwork, gold and silver, or your checking account. A current asset is an asset that is expected to be used or sold within one year. believed the U See full list on investopedia. To estimate the amount of profit and assets of any business correctly, we must know how to differentiate between assets that should be depreciated in the accounting books (i. , Which of the following terms refers to a formal evaluation of the integrity and reliability of a company's financial statements? and more. Depreciation expense calculations may need to be updated using new and more accurate estimates. LO 11. Aug 15, 2021 · Module 2 Quiz of Understanding Financial Statements Company Position Question 1 Inventory is listed as a current asset on the balance sheet, which means inventory should be used up within a year. Accounts receivable, which represents money owed to a company by its customers from sales on credit, is considered a current asset. Assets are the personal property of the owner of the company. The organization that formulates generally accepted accounting principles is the Financial Accounting Standards Board. Examples include properties like buildings, prepaid expenses, monetary resources like cash, investments like marketable securities, and receivables, as well as intangible properties such as software and patents. It is the retailer's Study with Quizlet and memorize flashcards containing terms like Which of the following is an asset? A) Mortgage payable B) Investments C) Common stock D) Retained earnings, Which of the following is not a step for solving an ethical dilemma? A) Identifying the alternatives and weighing the impact of each alternative on various stakeholders. Assets of a business are equal to owner’s equity less liabilities. Assets = Revenue + Expenses - Liabilities C. Instead, the acquisition of assets may involve an exchange of cash or other resources, or an increase in liabilities if financed through debt. Common types of assets include current, non-current, physical, intangible, operating, and non-operating. Assets represent the owner's claims against a company. All of these are inherent risks related to long lived asset accounts. The balances in the asset accounts will be summarized and reported on the company’s balance sheet. Which is a false statement? A. c) a long-term investment. Jul 17, 2025 · Capital assets form the productive base of an organization. ), Which of the following would not be considered an accounting transaction of the business?, Charitable missions include all of the following except and more. A) Total B) Marginal C) Absolute D) Average E) Next, Over the past year, a firm increased its current assets and Study with Quizlet and memorize flashcards containing terms like Which of the following is an accurate definition of the term asset? a) An obligation to creditors b) A resource that will be used to produce revenue c) A transfer of wealth from the business to its owners d) A sacrifice incurred from operating the business, Which of the following is not a source of assets? a) Creditors b Study with Quizlet and memorize flashcards containing terms like Which one of the following is a current asset?, Which one of the following is included in a firm's market value but yet is excluded from the firm's accounting value?, Net working capital is defined as: and more. E18:The combination of those two characteristics allows an entity to obtain the economic benefit and control others' access to the benefit. Let's analyze the options provided: Dividends: This is a distribution of profits to shareholders and is not considered an asset. A bank report listing checks written and deposits made during a month Reason: This is part of a bank's records. Which of the following items represents an expense paid in advance that creates benefits used in the future? Question: Which of the following is not an inherent risk related to long-lived asset accounts?\geoquad a. Lastly, 'An asset is a decrease in economic benefits during the accounting period in the form of outflows or depletions of assets' refers to expenses, not assets. Assets are the result of selling products or services to customers. Assets should be recognized when it is probable that an outflow of resources will be required to settle them. Service Revenue C. Dividends are typically recorded as a reduction in retained earnings, which is part of equity, not Study with Quizlet and memorize flashcards containing terms like True or false: The initial cost of property, plant, and equipment includes the purchase price and all expenditures necessary to bring the asset to its desired condition and location for use. This recognizes the diverse nature of assets in a business context. , depreciable assets) and non-depreciable assets. C. Jan 13, 2025 · Which of the following statements is the best definition of an asset? A. Study with Quizlet and memorize flashcards containing terms like Suppose that a company has $25,000 of current assets and $50,000 of current liabilities. Which of the following accounts would be classified as current assets on the balance sheet? a) Marketable securities, accounts payable, property, plant and equipment. Finance Ch 3 Which of the following ratios would not be classified as an asset management ratio? A) Current ratio B) Inventory turnover ratio C) Accounts payable period D) Capital intensity ratio Click the card to flip 👆 A) Current ratio Click the card to flip 👆 Study with Quizlet and memorize flashcards containing terms like Which of the following is classified as an asset? Select one: a. CON 8. 15. Tangible assets will be consumed in over a year. Examples include currency and property, which can appreciate in value over time. A record of increases and decreases in a specific asset, liability Study with Quizlet and memorize flashcards containing terms like Which of the following is an accurate definition of the term asset?, What are sources of assets?, Which of the following is an accurate depiction of the accounting equation? and more. Prepaid advertising represents a future economic benefit because the company has already paid for advertising services that will be used in the future. Tangible assets have physical substance. Assets are resources owned or controlled by a company and that have expected future benefits. assets, 2. Certain intangible business use property is considered a capital asset, such as goodwill or a franchise along with any net Sect Definition of Current Assets Current assets include cash and assets that are expected to turn to cash within one year of the balance sheet date. Current Assets Overview Current assets are assets that are expected to be converted into cash or used up within one year. A customer's purchase order for buying merchandise Reason: This is a source document for recording a transaction. Buildings c. Accounts Receivable – Accounts Receivable is an asset that arises from Question: 1. owner's equity c. Jul 31, 2023 · The statement that is true about assets is: "They are the properties or economic resources that always have a matching liability. 4 [8] provides the following discussion of the nature of an asset: E17: An asset has the following two essential characteristics: (a) It is a present right (b) The right is to an economic benefit. Deferred revenue e. Business assets can include such things as motor vehicles, buildings, machinery, equipment, cash, and accounts receivable, as well as intangibles like patents and copyrights. The following are the common types of current asset. Among the assets such as : Cash Accounts receivable Inventory Fixed assets a- Inventory is more liquid than accounts receivable b- cash, accounts receivable, inventory are all equally liquid c- fixed assets is most illiquid among these assets d- Inventory and fixed assets are equally Which of the following statement about asset is correct?. List of Assets Accounts – Examples Here’s a list of some of the most common asset accounts fond in a chart of accounts: Current Assets Cash – Cash is the most liquid asset a company can own. , In a classified balance sheet, how are assets usually classified?, In what order are current assets listed? and more. These accounts are increased with a debit and are recorded as assets until the service is used, at which point they are expensed. Jan 5, 2025 · Learn about current assets and how to calculate them. Question: Which of the following statements regarding assets is true?Assets include both physical and intangible items. Assets are crucial for financial stability and investment opportunities. e. Salary Aug 6, 2025 · Learn what intangible assets are, their types, and how they impact businesses. prepaid expenses. In accounting, assets are resources owned by a company that provide future economic benefits. Which of the following statements concerning intangible assets is correct? All of these answer choices are correct. In asset -intensive industries, companies tend to invest a large part of their funds in capital assets. Question: Which of the following is true about assets? Liabilities are always more than the assets of a business. needed the balance sheet to look good for investors. Find step-by-step solutions and your answer to the following textbook question: Which of the following is classified as an asset account? A) Prepaid Insurance B) Notes Payable C) Dividends D) Unearned Revenue. For businesses, capital assets are property, plant and equipment (PP&E). Study with Quizlet and memorize flashcards containing terms like Which of the following types of accounts are found on the income statement?, Which of the following is generally considered to be an asset?, An enterprise's obligations to pay cash or other economic resources to others are called: and more. b. Which of the following is the best definition of an asset? […] Study with Quizlet and memorize flashcards containing terms like Which of the following is classified as a current asset? A) Land B) Accounts Payable C) Equipment D) Inventory E) Note Payable, The tax rate applicable to the next dollar of taxable income is called the _____ tax rate. They can be classified into different categories, such as current assets and fixed assets. In the context of business, assets are the resources or properties owned by a company that have economic value. Here’s a breakdown of the options provided: Equipment: This is a long-term asset used in operations and is not classified as a current asset. \geoquad d. How Study with Quizlet and memorize flashcards containing terms like Which of these accounts is an asset? - Common Stock - Fees Earned - Accounts Payable - Supplies, Exchanges of assets for assets have what effect on equity? - There is no relationship between assets and equity - May have no impact on equity - Decrease equity - Increase equity, Which of the following statements is true? - Tangible Jan 8, 2024 · The student asked which of the following accounts is an asset: A) Dividends B) Prepaid advertising C) Supplies expense D) Accounts payable. liabilities d. Objectives of Valuation 4. government. Examples of tangible assets are cash, inventories, property, plant, and equipment. Definition of Assets 2. Current assets also include prepaid expenses that will be used up within one year. It is the retailer's gross sales divided by its net sales. Whether it’s cash, equipment, or intellectual property, each asset plays a crucial role in achieving organizational goals. Feb 14, 2022 · What Are Current Assets? Assets that get easily converted into cash or are used during the normal operating cycle of a business or within one year, whichever is greater, are considered current assets. It is because a long term asset is not expected to generate a benefit for an infinite amount of time. The chart of accounts for Corning Company includes the Which of the following statements is true? A. Assets - Liabilities Owner's Drawing+ Owner's Capital + Revenues+ + Expenses =, Communication of economic events is Current assets are expected to be consumed, sold, or converted into cash either in one year or in the operating cycle, whichever is longer. Assets are something of value the business owns or controls. revenues b. accounts payable. Accrued wages d. Common Stock B. How much net income has the firm earned this period? What is the total amount of assets the firm owns? How much debt is used to finance the firm? How much of the firm's net income was paid out in dividends? Study with Quizlet and memorize flashcards containing terms like Each of the following would be considered property, plant, and equipment or an intangible asset except:, The initial cost of land would include all of the following except:, Goodwill is the excess of the purchase price of an acquired company over the: and more. Types. Since, such amounts for sales made are receivable in the short period, accounts receivable are classified as current assets. d. We have an expert-written solution to this problem! Study with Quizlet and memorize flashcards containing terms like Which one of the following could represent the expanded basic accounting equation? A. D. Correctly identifying and classifying the types of assets is critical to the survival of a Business Accounting Accounting questions and answers which of the following accounts is an asset AFE Quiz 13: Assets We hope you enjoy it. Study with Quizlet and memorize flashcards containing terms like Equipment is classified in the balance sheet as a) a current asset. Study with Quizlet and memorize flashcards containing terms like 1. Which of the following is true about assets? a. Option a, cash, is the most liquid asset and is immediately available for use in fulfilling short-term obligations and Assets refer to any properties that belong to a firm and help it reap economic advantages in the future. The current ratio would be calculated by dividing $25,000 by $50,000 to arrive at a 0. Current assets are those which are convertible into cash in short period of time i. They currently have $2,800 in their money market account, and their monthly expenses are $4,500. Examples of Current Assets Tangible assets are economic resources of a company that has a physical form and has monetary value. Assets + Owner's Drawing + Expenses = Liabilities + Owner's Capital + Revenues B. What are the Main Types of Assets? An asset is a resource owned or controlled by an individual, corporation, or government with the expectation that it will generate a positive economic benefit. True or false? Nov 8, 2024 · The correct statement regarding assets is that they include both physical and intangible items. D) cash flow from Study with Quizlet and memorize flashcards containing terms like Which of the following is an example of a fixed asset?, Tasks such as calculating and analyzing the production and operating expenditures of the organization are referred to as ________. Assets include only physical items. In this case, the operating cycle represents the time it takes to buy or produce inventory, sell the finished products, and collect cash for the products sold. Oct 22, 2018 · Primary asset types in YouTube content ownership systems are a music video, sound recordings, composition share, TV episode, movie, Art Track, Web. The Tax Code defines capital assets in negative terms. , Which of the following best describes depreciation? - the act of continually reducing the accounting value of Answer to Which of the following is defined as a capital asset? Study with Quizlet and memorize flashcards containing terms like Which of the following are long-term tangible assets? Multiple select question. Equipment is typically categorized under property, plant, and equipment, which are assets used in the production of goods and C) The equation consists of three parts: assets, liabilities, and net income. Study with Quizlet and memorize flashcards containing terms like Which of the following is classified as an investment asset? Primary residence Money market accounts Stocks Certificates of deposit, Jason and Larissa would like to accumulate three times their monthly expenses in monetary assets. Debts b. Which of the following is an asset? Question content area bottom Part 1 A. c Study with Quizlet and memorize flashcards containing terms like Which one of the following accounts is the most liquid? A) Inventory B) Building C) Accounts Receivable D) Equipment E) Land, The cash flow that is available for distribution to a corporation's creditors and stockholders iscalled the: A) operating cash flow. Assets are the distributions to the owners of a company. Bookkeeping is only a small part of accounting. accounts receivable. , A current asset is a) usually found as a separate classification in the income statement. Definition of an Asset Account An asset account is a general ledger account used to sort and store the debit and credit amounts from a company’s transactions involving the company’s resources. Assets include both physical and intangible items. Changing depreciation estimates to reflect the use of the asset. Which of the following accounts is NOT an asset account? a. Which of the following statements is the best definition of an asset? Multiple choice question. D) The equation can be stated as assets minus liabilities equals equity. Expenses and assets are the same since they are both acquired with cash. B. So, in this case, the answer to the question which of the following is an asset type is pretty obvious. Cash deposit for the machinery that is to be delivered in the following period. maintained it could collect the $2 million from the Cuban c. Similarly, 'An asset is any obligation that a company must settle in the future' describes a liability, not an asset. Tangible assets will be consumed in a year or less. Answer the questions in order, and when completed, click the Check Score button. Which of the following accounts is not a liability account? a. Assets include both physical and intangible items. SuppliesAccounts payableAccounts receivableRetained earningsBuildingCash B. Fees Earned 3. From the list provided, the following accounts qualify as assets: Building: This is a long-term asset and represents the physical structures owned by a company. Which of the following is true about this company?, Which of the following are examples of current assets?, Which of the following would result Which of these questions can be answered by reviewing a firm's balance sheet? Multiple select question. 4 Which of the following is true regarding special issues in accounting for long-term assets? An asset’s useful life can never be changed. Asset is defined as decrease in equity, other than from transactions with owners. A Which of the following is true of assets? It is classified as an asset because it provides future economic benefits. Wages Payable d. e within a year. Cash b. In summary: Depreciation of Long Term Assets As with most types of assets, long term assets needs to be depreciated over the course of their useful life. Intangible assets derive their value from the rights and privileges granted to the company using them. An asset’s salvage value can never be changed. Accounts Payable C. An asset is an economic resource with potential future benefits owned or controlled by an entity due to past transactions. " Why do assets always have a matching liability? Assets represent the properties or **economic **resources owned by a business or individual. Accounts receivable reflects the amount to be received from the debtors for the sales made. Which of the following is true about assets? a. Study with Quizlet and memorize flashcards containing terms like Current assets are economic resources that are expected to be converted to cash or used up by the business within one year or the normal operating cycle, whichever is shorter. , Select all that apply Larry purchases land to be used for a new corporate Study with Quizlet and memorize flashcards containing terms like real property is classified in one of three ways: ___ which is NOT depreciable; ___ rental property, which is occupied by non transient lessees; or ___ property, Janet owns land that she uses in her business. Interest payable, What does asset turnover measure? Select one: a. )Multiple select question. com Jun 1, 2025 · Identifying Asset Accounts In accounting, assets are resources owned by a business that have economic value. Equipment 2. Assets are the personal property of the stockholders of a company. Cash: This is a current asset, representing liquid money available for use. Assets are claims against the company. This is because it is expected to be collected and converted to cash within a short period of time, typically within one year. Oct 19, 2020 · An asset is a resource that holds value and provides future economic benefits, classified as either tangible (like real estate and vehicles) or intangible (like stocks and patents). Although the operating cycle of a At this point, let’s take a break and explore why the distinction between current and noncurrent assets and liabilities matters. Which of the following describes a general ledger? The general ledger is a record containing all accounts used by a company. Assets are the personal property of the owner of the company. Understand their role in financial health and liquidity management for businesses. Question: Which of the following accounts is an asset? (Check all that apply. We should remember that assets are resources owned by a business that have economic value. Southern Airways maintained a receivable existed for the $2 million because it a. Assets include only physical items. Prepaid expenses are assets because they represent services or goods that the company has In general, everything you own or use for either personal or investment use is a capital asset. d) an intangible asset. Prepaid accounts, such as prepaid advertising, are considered assets because they represent prepayments of future expenses. To answer this question, we need to define what an asset is. The land is classified as personal-use property, and Study with Quizlet and memorize flashcards containing terms like Which of the following are considered assets? (Select all that apply. Among the options provided, Prepaid advertising is classified as an asset. It stands for the resources that a business has at its disposal for regular business activities. What is not considered an asset? Assets are the resources owned Identifying Asset Accounts In accounting, assets are resources owned or controlled by a business that have economic value and are expected to provide future benefits. teue svadye wpvx gyt qtbuc lfjq rsxe hodics bwjpk sdkrk zcpki qbak ixkessq vjgtc zat