Identify the asset.
A)Bank overdraft.
B)Plant and equipment.
C)Loan from ABC Ltd.
D)Accrued expenses.

Question

Quizplus · Accepted Answer

Plant and equipment are tangible assets that are used by a company to generate revenue over an extended period of time.

Answer: C
 Loans are assets that arise from lending activities, as they represent amounts due to the company that will be repaid with interest.

Both bank overdraft and accrued expenses are liabilities, as they represent amounts that the company owes to others, rather than assets that the company owns.

Identify the Asset