Indicate which of the following items could appear as an asset on the statement of financial position of a business. Explain your reasoning in each case.

1. £1,000 owed to the business by a credit customer who is unable to pay.

2. A patent, bought 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. A recently hired new marketing director who is confidently expected to increase profits by over 30 per cent during the next three years.

4. A recently purchased machine that will save the business £10,000 each year. It is already being used by the business but it has been acquired on credit and is not yet paid for.