Which Account Is NOT Included in the Asset Section of the Balance

question 53

Multiple Choice

Which account is NOT included in the asset section of the balance sheet?

• A) Supplies
• B) Utility Expense
• C) Land
• D) Computer

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Definitions:

Operating Expenses

Costs associated with a company’s operational activities, excluding direct labor and materials, that are necessary to run the business.

Sales Revenues

The total amount generated from selling goods or services before any expenses are subtracted.

Cash Operating Costs

The expenses a company incurs during its normal business operations that require cash payments, such as rent, utilities, and payroll.

Annual Depreciation

The portion of the cost of a fixed asset that is allocated as an expense in each accounting period during its useful life.