All of the following are assets except
A. inventory.
B. patents.
C. cash.
D. bank loans.
Bank loans
Which one does not belong to the company?
To identify which of the options is not an asset, we need to understand what assets are. Assets are resources with economic value that an individual or business owns and can use to generate future benefits.
Let's analyze the options provided:
A. Inventory: Inventory refers to the goods or products that a company holds for sale, including raw materials, work-in-progress, and finished goods. Since inventory represents an economic value and can be used to generate future benefits through sales, it is indeed an asset.
B. Patents: Patents are a form of intellectual property rights granted to an inventor, authorizing them to exclusively make, use, or sell their invention. Patents have an economic value, represent ownership, and can be used to generate future benefits, so they are classified as assets.
C. Cash: Cash is a liquid asset that is readily available and can be used for immediate transactions. Cash represents monetary value and is an essential asset for individuals and businesses to meet their immediate financial obligations, make purchases, or invest.
D. Bank loans: Unlike the previous options, bank loans are not assets. Bank loans represent liabilities, which are obligations or debts owed by a person or entity. When a bank provides a loan, it records it as an asset on their balance sheet since they expect to earn interest on it. However, for the borrower, the loan itself represents a liability because it involves a future obligation to repay the borrowed amount with interest.
Therefore, the correct answer is D. Bank loans.