Which of the Following Items Is Not Considered an Asset

question 54

Multiple Choice

Which of the following items is not considered an asset?

• A)Patents.
• B)Research expenses of an R&D project.
• C)Equipment under lease where the risks and rewards flows into the entity.
• D)All of the given answers.
• E)Research expenses of an R&D project and equipment under lease where the risks and rewards flows into the entity.

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Definitions:

Capital Goods

Assets utilized by businesses to create wealth through the manufacturing of goods and services, including buildings and tools.

Opportunity Cost

The sacrifice of potential rewards from different possibilities upon opting for one alternative.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods or services that can be produced with given resources and technology.

Negative Slope

A feature of a line on a graph that indicates a decrease in the dependent variable as the independent variable increases.