Which of the Following Assets Held by a Wholesale Business

question 27

Multiple Choice

Which of the following assets held by a wholesale business is an ordinary asset?

• A) Inventory.
• B) A machine used in the business and held more than one year.
• C) A factory building used in the business and held more than one year.
• D) Accounts payable.
• E) All of the above.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure a company's bookkeeping system is mathematically correct.

Transactions

Financial activities that involve the exchange of assets, services, or liabilities between two parties.

Ledger

An accounting book or computer file for recording and totaling economic transactions measured in terms of a monetary unit and categorized by account type.

Account Titles

Names given to the accounts that reflect the types of transactions they represent, used in bookkeeping to distinguish financial records.