Which of the Following Best Defines an Asset

question 52

Multiple Choice

Which of the following best defines an asset?

• A)Something with physical form that is valued at cost in the accounting records.
• B)An economic resource owned by a business and expected to benefit future operations.
• C)An economic resource representing cash or the right to receive cash in the near future.
• D)Something owned by a business that has a ready market value.

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Definitions:

Gross Receivable

The total amount owed to a company for goods sold or services rendered before any deductions for returns or allowances.

Executory Costs

Expenses arising from operational agreements, such as leases, which are not yet settled.

Periodic Lease Rental Payments

Regular payments made by a lessee to a lessor for the use of property, equipment, or vehicles, typically established under a lease agreement.