Assets represent the resources controlled by a company, including property, equipment, inventory, and cash. Liabilities and shareholders' equity represent what the company owes to others or what others have invested in the company, respectively, and do not necessarily equal the total assets of the company.

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Assets

Question 50

Multiple Choice

Assets:

A) represent the amounts earned by a company.
B) must equal the liabilities of a company.
C) must equal the shareholders' equity of the company.
D) represent the resources controlled by a company.

Correct Answer: