The definition of an asset is
A)an item that is classified in the asset section of the balance sheet
B)an item of value that will produce a benefit in the future
C)an item of value that resulted from a past consumption of a benefit
D)an item of value that resulted from a past consumption of an expense

Question

Quizplus · Accepted Answer

An asset is an item of value that will produce a benefit in the future. This includes items that are classified in the asset section of the balance sheet, but also extends to other valuable items such as intellectual property, goodwill, and future income streams. Assets are typically acquired or created as a result of past consumption of resources, but their value lies in their ability to generate future benefits.

The Definition of an Asset Is