What are assets?

What are assets?

• A. Items owned by a business that have monetary value
• B. Liabilities owed to outsiders
• C. Cash inflows from customers
• D. Business expenses paid

Answer: (A)

Assets are resources owned or controlled by a business that have future economic value. This describes items the company owns that have monetary value, like cash, inventory, equipment, or accounts receivable, and they show up on the balance sheet. The other descriptions point to liabilities (obligations owed to outsiders), revenues (cash inflows from customers that reflect income), or expenses (costs paid to operate the business). Assets are about ownership of valuable resources, not debts, earnings, or costs.

Assets are resources owned or controlled by a business that have future economic value. This describes items the company owns that have monetary value, like cash, inventory, equipment, or accounts receivable, and they show up on the balance sheet.

The other descriptions point to liabilities (obligations owed to outsiders), revenues (cash inflows from customers that reflect income), or expenses (costs paid to operate the business). Assets are about ownership of valuable resources, not debts, earnings, or costs.