Question

Finance is the functional area of business that is responsible for finding, among many alternatives, the best sources of funds and the best way to use them. All of the following are assets except:

a) Cash
b) Accounts payable
c) Inventory
d) Buildings

Answer 1

In a company's financials, assets are resources the company owns and liabilities are what it owes. Accounts payable is a liability, not an asset.

Step-by-step explanation:

Finance within a business context is concerned with identifying the optimal sources of funds and the most effective uses for them. When analyzing a company's financials, assets are resources that the company owns, whereas liabilities are what the company owes. In the list provided, all are considered assets except for accounts payable, which is a liability reflecting money that the company must pay to its creditors or suppliers.

Companies can gather financial capital through early-stage investors, reinvesting profits, borrowing through banks or bonds, and selling stock. Decisions about financing methods have implications for how businesses will repay their financial obligations.

Financial institutions, like banks, provide essential services acting as intermediaries between savers and borrowers and are vital for the function of financial markets. These institutions also offer various types of accounts and have the important role of ensuring economic stability through the management of their own assets and liabilities.