What Are Assets

question 3

Multiple Choice

What are assets?

• A)Resources that a company owns with future benefit
• B)Net worth of a company
• C)Amounts paid to owners
• D)Amounts owed to others and are future obligations

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Definitions:

Uncollectible Receivable

A receivable that is deemed irrecoverable and is written off as a loss because the debtor is unable to fulfill their obligation.

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its short-term assets.

Raw Materials

The basic materials and substances that are used in the initial stages of production and manufacturing.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.