Which of the Following Items Below Does Not Meet the Definition

question 50

Multiple Choice

Which of the following items below does not meet the definition of an asset?

• A)A building owned and used by a company
• B)Equipment that is owned and used by a company
• C)Publicly available water used by a farm to water its crops
• D)None of the above

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Definitions:

Accounts Payable

The amount of money that a company owes to its suppliers or creditors for goods and services received but not yet paid for.

Equity Issue

The process of raising capital through the sale of shares in a company, either through public offering or private placement.

Bank Loan

A sum of money lent by a bank to a borrower at a specified interest rate for a fixed period.

Trust Receipt

A document that acknowledges the receipt of goods by a person who is borrowing funds from a lender with the goods as collateral, with an agreement to pay the lender back upon the sale of the goods.