Accounting Fundamentals Certification (AFC) Practice Test 2025 – The Comprehensive All-in-One Guide to Exam Success!

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Question: 1 / 400

Which of the following is an Asset Account?

Utilities Expense

Accounts Payable

Cash

The correct answer is Cash, as it represents a resource owned by a business that has economic value and can be used to meet financial obligations or invest in future growth. In accounting, assets are defined as resources that a company owns and are expected to provide future economic benefits. Cash is the most liquid asset, and it is crucial for day-to-day operations, making it a fundamental component of a company’s asset portfolio.

Utilities Expense and Interest Expense are categorized as expense accounts, reflecting costs incurred during operations rather than resources owned. Accounts Payable, while related to obligations, is a liability account indicating the amount a company owes to its creditors for goods or services received, not an asset. Understanding these classifications is essential for accurately interpreting financial statements and managing financial resources effectively.

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Interest Expense

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