Which of the following accounts belongs on the asset side of a balance sheet?
A) depreciation expense
B) accounts payable
C) inventory
D) accruals

Question

Quizplus · Accepted Answer

Inventory is an asset that a company owns and intends to sell in the ordinary course of business, thus it belongs on the asset side of the balance sheet.

Choices A, B, and D all belong on the liability side of the balance sheet. Depreciation expense is an income statement account used to allocate the cost of a tangible asset over its useful life. Accounts payable is a liability that arises when a company purchases goods or services on credit from a supplier or vendor. Accruals are liabilities that represent expenses that have been incurred by a company but not yet paid for.

Which of the Following Accounts Belongs on the Asset Side