Multiple Choice
Which of the following descriptions best defines business activities?
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1. Introduction to Accounting
Types of Accounting
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100 shares of stock in General Motors is considered which type of resource in accounting?
A
Financial resource
B
Human resource
C
Natural resource
D
Physical resource
Verified step by step guidance1
Understand the types of resources in accounting: Financial resources refer to monetary assets like cash, stocks, and bonds; Human resources pertain to labor and expertise; Natural resources include raw materials like oil or timber; Physical resources are tangible assets like machinery or buildings.
Identify the nature of the asset in question: The problem mentions '100 shares of stock in General Motors,' which represents ownership in a company and has monetary value.
Determine the category that stocks fall under: Stocks are considered financial instruments and are classified as financial resources because they represent monetary value and investment.
Eliminate other options: Human resources are related to people and their skills, natural resources are raw materials, and physical resources are tangible assets. None of these apply to stocks.
Conclude that '100 shares of stock in General Motors' is classified as a financial resource in accounting.
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