Which term describes the value a company owns, such as cash and property?

Which term describes the value a company owns, such as cash and property?

• A. Liabilities
• B. Expenses
• C. Revenue
• D. Assets

Answer: (D)

Assets are resources a company owns or controls that are expected to provide future economic benefits. Examples include cash, buildings, equipment, and other property. These items are what the business uses to operate and create value, so they sit on the balance sheet as assets. Liabilities are obligations the company owes to others, expenses are costs incurred in running the business, and revenue is the income earned from delivering goods or services. Because of that, assets best describe the value the company owns, such as cash and property.

Assets are resources a company owns or controls that are expected to provide future economic benefits. Examples include cash, buildings, equipment, and other property. These items are what the business uses to operate and create value, so they sit on the balance sheet as assets.

Liabilities are obligations the company owes to others, expenses are costs incurred in running the business, and revenue is the income earned from delivering goods or services. Because of that, assets best describe the value the company owns, such as cash and property.