Which item is NOT considered an asset?

An asset is defined as a resource owned by a business that is expected to provide future economic benefits. In this context, accounts receivable, inventory, and office equipment are all assets because they contribute to the company's operations and generate future cash inflows.

Accounts receivable represents money owed to the business from customers who have purchased goods or services on credit, and it is expected to be collected in the near future. Inventory, which includes items that are held for sale or used in the production of goods, also has future economic value as it can be sold to generate revenue. Office equipment, considered a fixed asset, is used in the daily operations of the business and assists in generating revenue over multiple periods.

Interest payable, on the other hand, represents a liability, which is an obligation that the business must settle in the future. It reflects amounts that the company owes for borrowed funds, and thus, it does not provide future economic benefits to the company. This distinction between assets and liabilities is crucial for understanding a company's financial position and the overall accounting equation.