Asked by Erika Driesen on Apr 29, 2024
Verified
Which of the following is not an asset?
A) investments
B) cash
C) inventory
D) owner's equity
Owner's Equity
The residual interest in the assets of a business after all liabilities have been deducted, often referred to as net assets or shareholder equity.
Assets
Resources owned by a business with future economic benefits.
Investments
The balance sheet caption used to report long-term investments in stocks not intended as a source of cash in the normal operations of the business.
- Acquire an understanding of the processes involved in recording and reporting business activities and their consequences on financial reports.
Verified Answer
ME
Midnight EditingMay 01, 2024
Final Answer :
D
Explanation :
Owner's equity is not an asset. It is the residual interest in the assets of an entity after deducting liabilities. Assets are economic resources that are expected to provide future benefits to the entity, such as investments, cash, and inventory.
Learning Objectives
- Acquire an understanding of the processes involved in recording and reporting business activities and their consequences on financial reports.