Which of the following is an example of an asset?

• A. Accounts Payable
• B. Cash
• C. Notes Payable
• D. Common Stock

Answer: (B)

An asset is a resource the company owns or controls that will provide future economic benefits. Cash fits that definition because it is money on hand or in the bank that the business can use immediately to pay expenses, settle obligations, or invest in opportunities. Accounts payable and notes payable are obligations the company must repay, so they are liabilities rather than assets. Common stock represents the owners’ claim on the company’s assets after liabilities are settled, which makes it part of equity, not an asset. Therefore, cash is the asset.