Final answer:
The account from the options provided that is classified as an asset is Accounts Receivable. This is due to its nature of representing future economic benefits to the firm. Other options relate to liabilities, equity, or income, which are not assets.
Step-by-step explanation:
The account classified as an asset in a company's chart of accounts is E) Accounts Receivable. Assets are economic resources that are expected to provide a future benefit to the firm. Accounts Receivable represents money owed to the company by its customers for goods or services delivered but not yet paid for. Unlike Accounts Receivable, Accounts Payable, Common Stock, Service Revenue, and Unearned Revenue represent liabilities and equity, or the income of the company, none of which are considered assets.
In the context of a bank's balance sheet, the money listed under assets may not actually be in the bank due to the concept of fractional-reserve banking, where banks are required to keep only a fraction of their deposit liabilities in reserve. Many assets may be loaned out to others or invested in various securities.
When buying loans in the secondary market, an investor may pay more or less based on the loan's risk and current economic conditions. For instance, an investor might pay less for a loan if the borrower has been late on payments (a reflection of higher risk) or if interest rates have risen since the bank made the loan (making the loan less valuable compared to new loans issued at higher rates). Conversely, an investor might pay more if the borrower is a profitable firm (lower risk) or if interest rates have fallen (making the loan's fixed rate more attractive compared to new loans).