Which of the following correctly describes an asset?
A)An obligation of the entity
B)An investment the owners have made
C)An economic resource that provides future benefits
D)An economic sacrifice made to earn revenue

Question

Quizplus · Accepted Answer

An asset is defined as an economic resource that provides future benefits to the entity, such as the potential to generate revenue or reduce expenses. This can include physical items, such as property or inventory, as well as intangible items, such as patents or trademarks. Choices A and D describe liabilities and expenses, respectively, and choice B describes owner's equity, which is not necessarily the same as an asset.

Which of the Following Correctly Describes an Asset