Which of the Following Is NOT an Asset Account

question 61

Multiple Choice

Which of the following is NOT an asset account?

• A)Prepaid Rent
• B)Accounts Receivable
• C)Common Stock
• D)All of these are asset accounts.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.

Marketable Securities

Financial instruments or assets that can be easily converted into cash, typically including stocks and bonds.

Common Stock

A type of security that represents ownership in a corporation, with holders having a claim on the company's profits in the form of dividends.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business, whichever is longer.