Which term best matches 'Resources that belong to a business and help it earn economic benefits in the future'?

Which term best matches 'Resources that belong to a business and help it earn economic benefits in the future'?

• A. Assets
• B. Intangible assets
• C. Long-term assets
• D. Current assets

Answer: (A)

Assets are resources owned by a business that are expected to bring future economic benefits. This includes both tangible items like cash, equipment, and inventory, and intangible ones like patents or goodwill. The description emphasizes ownership and future benefit, which fits the broad category of assets. Intangible assets refer only to non-physical items, so they’re too narrow. Long-term assets are defined by a time horizon (held for more than a year), which excludes many assets that can still generate benefits within a year. Current assets are those expected to be used or converted to cash within a year, which again narrows the scope.

Assets are resources owned by a business that are expected to bring future economic benefits. This includes both tangible items like cash, equipment, and inventory, and intangible ones like patents or goodwill. The description emphasizes ownership and future benefit, which fits the broad category of assets.

Intangible assets refer only to non-physical items, so they’re too narrow. Long-term assets are defined by a time horizon (held for more than a year), which excludes many assets that can still generate benefits within a year. Current assets are those expected to be used or converted to cash within a year, which again narrows the scope.