In the context of accounting, a business associate can be which of the following?

• A. A fixed asset
• B. A prepaid expense
• C. A partner in a partnership
• D. An intangible liability

Answer: (C)

Verified step by step guidance

1. Understand the term 'business associate' in the context of accounting. A business associate typically refers to an individual or entity that collaborates with a business, often in a partnership or contractual relationship.
2. Review the options provided: A fixed asset, a prepaid expense, a partner in a partnership, and an intangible liability. Consider the definitions of each term to determine which aligns with the concept of a business associate.
3. A fixed asset refers to tangible assets used in the operations of a business, such as machinery or buildings. This does not align with the concept of a business associate.
4. A prepaid expense is an accounting term for payments made in advance for goods or services to be received in the future. This also does not align with the concept of a business associate.
5. A partner in a partnership is an individual or entity that collaborates in a business venture, sharing profits, losses, and responsibilities. This aligns with the definition of a business associate, making it the correct answer.