Question

What account below is classified as an asset in any company's chart of accounts?

1) Accounts Payable
2) Accounts Receivable
3) Accumulated Depreciation
4) Advertising Expense

Answer 1

The account receivable is classified as an asset in any company's chart of accounts.

Step-by-step explanation:

The account receivable is classified as an asset in any company's chart of accounts. This account represents the money owed to the company by its customers for goods or services that have been sold on credit.

Accounts Payable, on the other hand, is a liability account that represents the money owed by the company to its suppliers or creditors for goods or services received on credit.

Accumulated Depreciation is a contra asset account that represents the cumulative depreciation of an asset over its useful life. It is not classified as a separate asset.

Advertising Expense is a different type of account called an expense account and it is classified as an expense, not an asset.