Which of the following would be considered an operating asset in return on investment computations?
A) Land being held for plant expansion.
B) Treasury stock.
C) Accounts receivable.
D) Common stock.

Question

Quizplus · Accepted Answer

Operating assets are those that are used to generate revenue in the normal course of business operations. Accounts receivable is an example of an operating asset as it represents money owed to the company for goods or services already provided. Land being held for plant expansion and common stock are not operating assets as they are not directly used to generate revenue. Treasury stock is a contra-equity account and not an asset.

Which of the Following Would Be Considered an Operating Asset