Which of the following is NOT a typical asset account?

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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 NOT a typical asset account?

Explanation:
Assets are resources a company owns or controls that are expected to bring future economic benefits. Cash, inventory, and accounts receivable fit this definition because they represent actual resources the company can use or convert to cash. Revenue, however, is an income statement item that reflects earnings from operations. It increases net income and ultimately retained earnings in equity, but it is not a resource the company owns or controls as a future benefit. So revenue is not a typical asset account.

Assets are resources a company owns or controls that are expected to bring future economic benefits. Cash, inventory, and accounts receivable fit this definition because they represent actual resources the company can use or convert to cash. Revenue, however, is an income statement item that reflects earnings from operations. It increases net income and ultimately retained earnings in equity, but it is not a resource the company owns or controls as a future benefit. So revenue is not a typical asset account.

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