Question: Indicate which of the following items could appear as an asset on the balance sheet of a business. Explain your reasoning in each case:
1 £1,000 owing to the business by a customer who is unable to pay.
2 The purchase of a patent from an inventor that gives the business the right to produce a new product. Production of the new product is expected to increase profits over the period during which the patent is held.
3 The business hiring a new marketing director who is confidently expected to increase profits by over 30 per cent over the next three years.
4 The purchase of a machine