Which of the following is an asset account example?

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Study for the ACFE Accounting Terms Test with interactive quizzes. Prepare with multiple choice questions, each question accompanied by explanations and hints. Ensure your success with our study materials!

Multiple Choice

Which of the following is an asset account example?

Explanation:
An asset account records resources owned by the business that are expected to bring future benefits. Property fits this as a resource the company uses, typically classified as a long‑term (fixed) asset on the balance sheet and recorded at cost, then depreciated over time. In double‑entry accounting, acquiring property increases the asset with a debit and depreciation gradually reduces its book value. The other options aren’t asset accounts: revenue is income that increases equity, accounts payable is a liability, and owner's equity represents the owner's claim after liabilities are paid.

An asset account records resources owned by the business that are expected to bring future benefits. Property fits this as a resource the company uses, typically classified as a long‑term (fixed) asset on the balance sheet and recorded at cost, then depreciated over time. In double‑entry accounting, acquiring property increases the asset with a debit and depreciation gradually reduces its book value. The other options aren’t asset accounts: revenue is income that increases equity, accounts payable is a liability, and owner's equity represents the owner's claim after liabilities are paid.

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