Knowee
Questions
Features
Study Tools

Which of the following is a financial asset?Answer : Machinery  Intangible assets   Loan receivable  Prepayments

Question

Which of the following is a financial asset?

  • Machinery
  • Intangible assets
  • Loan receivable
  • Prepayments
🧐 Not the exact question you are looking for?Go ask a question

Solution

The financial asset among the options provided is the "Loan receivable".

Here's why:

  1. Machinery: This is a physical asset, not a financial one. It's a tangible item that a company uses in its operations.

  2. Intangible assets: These are non-physical assets, such as patents, copyrights, and trademarks. While they have value, they are not considered financial assets.

  3. Loan receivable: This is indeed a financial asset. When a company or individual lends money to another entity, the promise of repayment (usually with interest) is considered a financial asset.

  4. Prepayments: These are payments made in advance for goods or services that will be received in the future. While they represent a form of asset, they are not classified as financial assets.

So, the correct answer is "Loan receivable".

This problem has been solved

Similar Questions

Which of the following is not an asset? Question 2 Answer Prepaid Rent Equipment Accounts Payable Vehicles

Which of the following is not an element of financial statement A. Liability B. Capital C. Income Statement D. Assets

Which of the following is an example of a financial resource for a business?Bank overdraftMachineryStock

The following are classified in the balance sheet as a non-current assets, except;a.Cashb.Buildingc.All are non-current assetsd.Machinery

Which of the following are reported as assets on a bank's balance sheet?A) borrowingsB) reservesC) savings depositsD) bank capital

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.