Which of the following transactions does not meet the definition of an asset?
A) deposit for purchase of equipment
B) commitment to purchase equipment
C) finance leased equipment
D) purchase of equipment on credit.

Question

Quizplus · Accepted Answer

A commitment to purchase equipment is not an actual acquisition of an asset. It is only a promise to make a future purchase. Therefore, it does not meet the definition of an asset. The other options involve actual purchases or deposits for purchases of equipment, which meet the definition of an asset.

Which of the Following Transactions Does Not Meet the Definition