19.03.2023 - 10:12

Which of the following is an asset account? A. Salaries Expense B. Accounts Payable C. Service Revenue D. Prepaid Expense

Which of the following is an asset account?

A. Salaries Expense

B. Accounts Payable

C. Service Revenue

D. Prepaid Expense

Answers (1)
  • CrazyBlondy
    April 7, 2023 в 12:42

    The correct answer is D. Prepaid Expense.

    An asset account is a type of account on a company's balance sheet that represents resources that the company owns or controls and that are expected to provide future economic benefits. Prepaid expenses are assets that represent payments made in advance for goods or services that will be received in the future. Examples of prepaid expenses include prepaid rent, prepaid insurance, and prepaid advertising.

    Salaries Expense (A) is an expense account, which represents the cost of salaries paid to employees during a particular period.

    Accounts Payable (B) is a liability account, which represents the amount of money that a company owes to its suppliers or vendors for goods or services purchased on credit.

    Service Revenue (C) is a revenue account, which represents the money that a company earns from providing services to its customers.

    Therefore, option D, Prepaid Expense, is the only asset account among the given options.

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