Which group of accounts is comprised of only assets?

Which group of accounts is comprised of only assets? Accounts Receivable, Revenue, Cash Cash, Accounts Payable, Buildings Unearned Revenues, Prepaid Expenses, Cash Prepaid Expenses, Buildings, Patents

General guidance

Concepts and reason
Assets: It can be defined as the resources owned by the organization which is capable of providing some future benefits. On the basis of duration of time, assets are of two types which are: 1. Current Assets and 2. Fixed Assets.

Fundamentals

Account Receivable: It can be defined as the amount of money that a business has yet not received from its clients. When a business provides any service or product on credit for which payment is due but yet not received, the cash due to the business becomes an account receivable. Accounts receivable is a major aspect of cash flow. It shows how a business is making its sales.
Revenue: The income or amount which is received from services provided and sale of goods by the company which also includes the discounts and deductions during the year is called Revenue.
Accounts Payable: The amount owed by a business to its supplier is known as account payable. It is the liability of the company and shown on the liability side of the balance sheet.
Unearned revenue: It is the part of the total revenue that cannot be recorded until goods or services are provided. It is a liability that shows amount received in advance for providing goods or services on a future date.
Prepaid expense: It can be defined as an expense that has been paid by the company in advance. Such an expense is shown as an asset in the books of accounts as economic benefits of such an expense are to be availed by the company in a future period.
Patent: It is an intellectual property right which is entitled to an inventor for making, using and selling the product he has developed. It is generally granted for a period of 20 years.

Step-by-step

Step 1 of 2

Identify the relevant group of accounts having assets only. Only those things which will be capable of generating some future benefits to the firm shall be considered as an asset to the firm.
The nature of the asset may be either current or fixed. Duration of time and the capacity to generate the future benefit will determine whether an asset is to be treated as current or fixed.

The asset may be current as well as fixed. The current assets of the firm include: Cash, prepaid expenses, and accounts receivables. Current assets are those which can be converted into cash and cash equivalents within a shorter span of time.
While, fixed assets would include: Building, and Patents. Fixed assets are those assets which are used for long term purpose in the business and cannot be easily converted into cash and cash equivalents in a shorter time duration.

Based on the data provided, locate and identify the relevant category of the group of accounts consisting of assets only.

Step 2 of 2

The relevant category of the group of accounts must have assets such as prepaid expenses, cash, buildings, and patents. The category consisting of assets may be either a current asset or fixed asset. All these assets have the capacity to generate the future benefit in the long run to the business.

The category of the group of accounts having items such as prepaid expenses, buildings, and patents are comprised of only assets.

The category of the group of accounts having items such as prepaid expenses, buildings, and patents are comprised of only assets. It is just because each of the items in this category is either a current asset or fixed asset.

Answer

The category of the group of accounts having items such as prepaid expenses, buildings, and patents are comprised of only assets.

Answer only

The category of the group of accounts having items such as prepaid expenses, buildings, and patents are comprised of only assets.

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