What is an example of an immediate benefit for a business?

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Study for the ASU ACC502 Financial Accounting Exam. Practice with comprehensive quizzes and detailed explanations. Prepare with confidence!

The option of gas for a delivery van represents an immediate benefit for a business because it directly contributes to the operational activities that generate revenue. When a business purchases gas, it enables the delivery van to operate effectively, facilitating the transportation of goods and services to customers. This directly correlates with the revenue-generating functions of the business, allowing it to meet customer demands and maintain efficient logistics.

In contrast, future contracts, while potentially beneficial, represent agreements that will yield benefits down the line rather than providing an immediate impact. Long-term investments, similarly, may contribute to a business's growth over time but do not offer instant advantages. Accounts receivable indicates money owed to the company and, while important for cash flow, represents delayed benefits until the customer pays their debt. Therefore, gas for the delivery van stands out as the only option that provides a direct, immediate benefit to the business’s operations and revenue generation.

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