Which of these would be considered an asset?

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Study for the Bookkeeping Basics Test. Use flashcards and multiple choice questions that include hints and explanations. Get ready for your exam!

Multiple Choice

Which of these would be considered an asset?

Explanation:
An asset is a resource a business owns or controls that is expected to bring future economic benefits. A vehicle fits this because it’s used in the business to operate and help generate value. Taxes are amounts owed to the government—liabilities or expenses, not assets. The owner’s investment in the company represents equity, not a resource the company uses. The owner’s personal house isn’t owned by the business, so it isn’t a business asset either. So, among these, the vehicle is the asset.

An asset is a resource a business owns or controls that is expected to bring future economic benefits. A vehicle fits this because it’s used in the business to operate and help generate value. Taxes are amounts owed to the government—liabilities or expenses, not assets. The owner’s investment in the company represents equity, not a resource the company uses. The owner’s personal house isn’t owned by the business, so it isn’t a business asset either. So, among these, the vehicle is the asset.

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