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Question: 1 / 430

Which of the following is an example of an asset class?

Expenses

Buildings

An asset class refers to a grouping of various asset types that share similar characteristics or functions in financial reporting. Buildings are a clear example of an asset class because they are tangible fixed assets that have value and are used in operations to generate revenue for a business. In SAP Financial Accounting, buildings would typically be categorized under property, plant, and equipment on the balance sheet.

In contrast, expenses, revenues, and liabilities do not represent asset classes. Expenses relate to costs incurred in the course of operations and are not assets, revenues refer to income generated from business activities, and liabilities are obligations of the entity. None of these classifications represent tangible assets that could be used or owned by a business in the same way as buildings, which are included in the asset class designated for long-term use.

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Revenues

Liabilities

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