Which of the Following Accounts Is an Asset

question 143

Multiple Choice

Which of the following accounts is an asset?

• A) Cash
• B) Notes payable
• C) Drawing
• D) Expenses

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Definitions:

Cost of Equity

A theoretical payment made by a corporation to its stockholders to reward them for the risk involved in investing their funds.

Dividends

Money that a corporation gives to its members of shareholding, often coming from the profits of the company.

Beta

A measure of a stock's volatility in relation to the overall market; a higher beta indicates greater volatility and risk.

Preferred Shares

A type of stock that provides a fixed dividend before any dividends are paid to common stockholders and typically has no voting rights.