Which of the following is an asset?

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Multiple Choice

Which of the following is an asset?

Explanation:
Assets are resources a business owns that will bring future economic benefits. Inventory fits this because it consists of goods the company owns and expects to sell, making it a current asset on the balance sheet. Wages payable is a liability—the company owes wages. Service revenue is income earned from providing services, which increases equity. Interest expense is a cost the company incurs, reducing net income. So, inventory is the asset.

Assets are resources a business owns that will bring future economic benefits. Inventory fits this because it consists of goods the company owns and expects to sell, making it a current asset on the balance sheet. Wages payable is a liability—the company owes wages. Service revenue is income earned from providing services, which increases equity. Interest expense is a cost the company incurs, reducing net income. So, inventory is the asset.

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