Which account is Asset?

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Study for the Accounting CBE Exam. Gain insights with flashcards and multiple-choice questions, each paired with detailed explanations. Prepare for your accounting certification!

Multiple Choice

Which account is Asset?

Explanation:
Assets are resources owned or controlled by a business that are expected to bring future economic benefits. Cash fits this idea perfectly because it is a readily available resource the company can use for payments, investments, or day-to-day operations. The other items represent different types of accounts: advertising expense and wages expense are costs recorded on the income statement, which reduce net income; fees earned is revenue, which increases equity but is not an asset. So among the options, cash is the asset.

Assets are resources owned or controlled by a business that are expected to bring future economic benefits. Cash fits this idea perfectly because it is a readily available resource the company can use for payments, investments, or day-to-day operations. The other items represent different types of accounts: advertising expense and wages expense are costs recorded on the income statement, which reduce net income; fees earned is revenue, which increases equity but is not an asset. So among the options, cash is the asset.

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