Which of the following is an example of a financial asset?
A) Inventory
B) accounts receivable
C) Capital assets
D) Prepaid expenses

Question

Quizplus · Accepted Answer

Accounts receivable is a financial asset because it represents money that a company is owed by its customers and can be converted into cash. Inventory, capital assets, and prepaid expenses are not financial assets because they represent physical items or expenses rather than money owed to the company.

Which of the Following Is an Example of a Financial