Which group of accounts is comprised of only assets? a. Prepaid Expenses, Buildings, Patents b. Unearned Revenue, Prepaid Expenses, Cash c. Cash, Accounts Payable, Buildings d. Accounts Receivable, Revenue, Cash

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Business

Yin

17 October, 10:33

Which group of accounts is comprised of only assets? a. Prepaid Expenses, Buildings, Patents b. Unearned Revenue, Prepaid Expenses, Cash c. Cash, Accounts Payable, Buildings d. Accounts Receivable, Revenue, Cash

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Answers (1)

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Lucille · Answer 1

a. Prepaid Expenses, Buildings, Patents

Explanation:

As we know that the assets are further classified into three types i. e fixed asset, current assets, and the intangible assets

Based on the time period and the nature of the asset it is to be differentiated from each other.

On the given choices, the first option is only accurate as it contains

Prepaid expenses = Current Assets

Buildings = Fixed Asset or long term asset

Patents = Intangible assets