Which of the following is NOT considered an asset?

An asset is generally defined as anything of value or a resource owned by a business that is expected to provide future economic benefits. Options A, B, and D all represent tangible resources owned by the funeral business that can contribute to its operations or provide future revenue.

Real estate owned by the business can appreciate over time and may be utilized for conducting funeral services or as a space for operations. Cash in the business bank account is a straightforward asset, as it is readily available for use in daily operations or expenses. Equipment used for funeral services is also an asset, as it directly supports the business's operations and can depreciate in value over time, yet it still represents an investment in the ability to provide services.

In contrast, outstanding loans to clients are not considered assets. While they may represent money that is expected to be received in the future, they do not constitute ownership of a tangible resource. Instead, they are more accurately described as receivables or debts owed to the business, which are liabilities for the clients and do not add direct value to the business until paid. Therefore, identifying outstanding loans to clients as not being an asset is correct, as they do not fit the criteria of a resource that the business currently owns and can actively utilize.