Accounting Fundamentals Certification (AFC) Practice Test

Question: 1 / 400

Which of the following is considered an asset?

Equipment

An asset is defined as a resource owned by a business that is expected to provide future economic benefits. Equipment qualifies as an asset because it is a tangible resource that a company can use in its operations to generate revenue over time. The equipment retains value and is utilized in the production of goods or the delivery of services.

Service revenue, on the other hand, represents income earned from providing services and is considered part of the income statement, not an asset. Accounts payable refers to obligations or debts that a company owes to suppliers, which is a liability, while utilities expense represents costs incurred for services such as electricity or water, impacting the income statement as an expense rather than an asset.

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Service Revenue

Accounts Payable

Utilities Expense

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