Question

The balance of cash book is ? 1) a liability 2) an asset. 3) income. 4) expenses

Answer 1

Option 2) An Asset is the correct answer.

Explanation------

Here are two definitions of assets in business

1. Something valuable that an entity owns, benefits from, or has use of, in generating income.

2. Accounting: Something that an entity has acquired or purchased, and that has money value (its cost, book value, market value, or residual value). An asset can be (1) something physical, such as cash, machinery, inventory, land and building, that is property of owner (2) an enforceable claim against some other, such as accounts receivable, (3) right, such as copyright, patent, trademark, or (4) an assumption, such as goodwill. Assets shown on their owner's balance sheet are usually classified according to the ease with which they can be converted into cash.

The balance of cash book is the asset that is what a company has its own.