Which of the following would NOT be considered an asset?

Which of the following would NOT be considered an asset?

• A. A purchased car
• B. An ongoing loan
• C. Cash savings
• D. Property owned

Answer: (B)

An ongoing loan is not considered an asset because it represents a liability rather than an ownership stake in something of value. In accounting terms, an asset is anything of economic value that can be owned or controlled to produce positive economic benefit. A loan, on the other hand, is money borrowed that must be repaid, which creates an obligation rather than an asset.

For clarity, the other options represent assets: a purchased car and property owned are tangible assets that provide value, while cash savings are liquid assets readily available for use. These items can contribute to overall wealth and financial stability, thus fitting the definition of assets.