Which of the following is a financial asset?
A)Prepaid expense.
B)Supplies inventory.
C)Loan to another government.
D)Tangible capital asset.

Question

Quizplus · Accepted Answer

A loan to another government is a financial asset as it represents a financial claim on another entity and can generate future economic benefits. Prepaid expense and supplies inventory are both examples of non-financial assets. Tangible capital asset is also a non-financial asset as it refers to physical assets with a useful life of more than one year.

Which of the Following Is a Financial Asset