What is an example of an asset on a Balance Sheet?

Assets on a balance sheet represent resources owned by a business that provide future economic benefits. Accounts Receivable is classified as an asset because it indicates money owed to the business by its customers for goods or services that have been delivered but not yet paid for. This amount is expected to be collected in the near future, thus contributing to the company’s overall financial stability and resources.

Other options, while they relate to financial activities, do not fall under the category of assets. Accounts Payable, for instance, represents obligations the company owes to creditors and is classified as a liability. Short-term loans are also liabilities that must be repaid, reflecting a company's obligations rather than its resources. Accumulated depreciation, on the other hand, is a contra asset account that reduces the value of fixed assets over time, but it does not represent a standalone asset itself.