Question

Assets for a particular business might include: A) cash, accounts payable, and notes payable. B) cash, retained earnings, and accounts receivable. C) cash, accounts receivable, and inventory. D) inventories, property and equipment, and contributed capital.

Answer 1

Answer:

The correct answer is letter "C": cash, accounts receivable, and inventory.

Explanation:

A company's assets represent all property the firm can use to generate income. Thus, assets imply talking about cash, accounts receivable, inventory, pre-paid investments, buildings, land, machinery, and vehicles among others. Assets can also be intangible such as patents, trademarks or copyrights. All of them are destined to increase the organization's value.