Which of the following is an asset account?

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

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the definition of an asset account. An asset account represents resources owned by a business that have future economic value, such as cash, accounts receivable, inventory, or equipment.
2. Step 2: Review the options provided in the problem. Service Revenue is a revenue account, Accounts Payable is a liability account, and Owner's Capital is an equity account.
3. Step 3: Identify the correct answer, Accounts Receivable, which is an asset account. It represents money owed to the business by customers for goods or services provided on credit.
4. Step 4: Confirm that Accounts Receivable fits the definition of an asset account because it is a resource that will provide future economic benefits to the business.
5. Step 5: Conclude that Accounts Receivable is the correct answer based on its classification as an asset account in financial accounting.