Identify which of the following lists include only examples of assets

General
1

identify which of the following lists include only examples of assets.

2

Identify which of the following lists include only examples of assets.

Answer:

To identify which lists include only examples of assets, it’s important first to understand what assets are. Assets are resources owned by a company or individual that have economic value and can be expected to provide future benefits. Common examples of assets include:

  • Cash and Cash Equivalents: Money in hand or in the bank.
  • Accounts Receivable: Money owed to a business by its customers.
  • Inventory: Goods available for sale.
  • Property, Plant, and Equipment (PP&E): Tangible long-term assets like buildings, machinery, and vehicles.
  • Investments: Stocks, bonds, or other financial securities held for investment purposes.
  • Intangible Assets: Brand names, goodwill, patents, and copyrights.
  • Prepaid Expenses: Payments made for goods or services to be received in the future.

Given this, let’s review the lists to determine which one contains only assets.

Example Lists:

  1. List A: Cash, Inventory, Accounts Receivable, Equipment
  2. List B: Accounts Receivable, Supplies, Notes Payable, Inventory
  3. List C: Land, Retained Earnings, Cash, Equipment
  4. List D: Inventory, Prepaid Expenses, Vehicles, Machinery

Analysis of Each List:

  1. List A: Cash, Inventory, Accounts Receivable, Equipment

    • Cash: An asset.
    • Inventory: An asset.
    • Accounts Receivable: An asset.
    • Equipment: An asset.

    List A contains only assets.

  2. List B: Accounts Receivable, Supplies, Notes Payable, Inventory

    • Accounts Receivable: An asset.
    • Supplies: An asset.
    • Notes Payable: A liability (not an asset).
    • Inventory: An asset.

    List B does not contain only assets (Notes Payable is a liability).

  3. List C: Land, Retained Earnings, Cash, Equipment

    • Land: An asset.
    • Retained Earnings: Part of equity (not an asset).
    • Cash: An asset.
    • Equipment: An asset.

    List C does not contain only assets (Retained Earnings is part of equity).

  4. List D: Inventory, Prepaid Expenses, Vehicles, Machinery

    • Inventory: An asset.
    • Prepaid Expenses: An asset.
    • Vehicles: An asset (part of Property, Plant, and Equipment).
    • Machinery: An asset (part of Property, Plant, and Equipment).

    List D contains only assets.

Conclusion:

The lists that include only examples of assets are List A and List D.