Which of the following is an asset account? O A. Unearned Revenue B. Notes Payable O C. Accounts Receivable O D. Wages Payable
Which of the following is an asset account? O A. Unearned Revenue B. Notes Payable O C. Accounts Receivable O D. Wages Payable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Quiz Question: Identifying an Asset Account**
**Question:**
Which of the following is an asset account?
**Options:**
- **A. Unearned Revenue**
- **B. Notes Payable**
- **C. Accounts Receivable**
- **D. Wages Payable**
*Explanation:*
When studying accounting, it's essential to differentiate between various types of accounts. This question helps test your understanding of asset accounts, which are resources owned by the company likely to provide future economic benefits.
**Option Explanation:**
- **A. Unearned Revenue**: This is a liability account representing money received by a business for services not yet performed or goods not yet delivered.
- **B. Notes Payable**: This represents a liability, specifically a written promise to pay a certain amount of money at a future date.
- **C. Accounts Receivable**: This is an asset account representing money owed to the business by its customers for sales made on credit.
- **D. Wages Payable**: This is a liability account representing wages owed to employees that have not yet been paid.
The correct answer is **C. Accounts Receivable**, as this is an asset account.
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