Which of the following is an example of an asset in accounting?

• A. Owner's Equity
• B. Accounts Receivable
• C. Service Revenue
• D. Accounts Payable

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the definition of an asset in accounting. An asset is a resource owned or controlled by a company that is expected to provide future economic benefits. Examples include cash, accounts receivable, inventory, and property.
2. Step 2: Analyze each option provided in the question to determine whether it qualifies as an asset. For example, 'Owner's Equity' represents the residual interest in the assets of the entity after deducting liabilities, so it is not an asset.
3. Step 3: Evaluate 'Accounts Receivable.' This represents money owed to the company by customers for goods or services provided on credit. Since it is expected to provide future economic benefits, it qualifies as an asset.
4. Step 4: Consider 'Service Revenue.' Revenue is the income earned from providing services or selling goods, but it is not a resource owned or controlled by the company, so it is not an asset.
5. Step 5: Assess 'Accounts Payable.' This represents amounts the company owes to suppliers or creditors, which is a liability rather than an asset. Therefore, it does not qualify as an asset.