Which of the following is an example of an asset?

Step 1: Question 3 - Which of the following is an example of a liability? A liability is money or value the business must pay to others. Option A: Money the business owes to suppliers is accounts payable, a liability. Option B: Equipment the business owes to customers does not make sense; equipment is typically an asset owned by the business. Option C: Money owed to customers could be a liability (e.g., advances), but A is the standard example. Option D: Taxes owed is a liability, but A is highlighted. A Step 2: Question 4 - Which of the following is an example of equity? Equity is the owner's residual interest in the assets after deducting liabilities (from accounting equation: Assets = Liabilities + Equity). Options A and B are liabilities. Options C and D refer to revenue, which increases equity (via profit), but the closest example of equity contribution is earnings/revenue leading to retained earnings. C Step 3: Question 5 - What is equity? Equity = Assets - Liabilities, representing net investment by owners after settling debts. Option A matches this definition. Option B is incorrect (owes implies liability). Options C and D describe assets. A