Which item is a tangible object that can be used to generate future income? I. a financial asset
II) a physical asset
III) a liability

Question

Quizplus · Accepted Answer

A physical asset, such as a property or a piece of equipment, is a tangible object that can be used to generate future income. Financial assets, such as stocks or bonds, are intangible and their future income generation is not guaranteed. Liabilities decrease future income and therefore cannot be used to generate it.

Which Item Is a Tangible Object That Can Be Used