Ashok is a furniture seller. He recently bought a TV.

What is the category of the TV?

Expense

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Asset

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Capital

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Liability

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Solution

The correct option is B
Asset

For a furniture seller, furniture (like tables, chairs) are goods. All other resources are assets.
Here, TV is an asset because:
a. It is owned by the furniture seller.
b. It will give future benefits by entertaining the customers.
c. It can be expressed in terms of money.

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Similar questions

Paul is a book seller. He pays for electricity, buys a TV, and pays salary to the salesman. Identify assets or expenses in these transactions.

Classify the above mentioned accounts (in Question 1.IA) into Asset, Liability, Capital, Revenue and Expenses.

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