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:

Perfect Substitute

A perfect substitute is a good or service that can be used in exactly the same way as another, meaning consumers are indifferent between the two.

Utility Function

A mathematical representation that ranks individuals' preferences or satisfaction derived from consuming goods and services.

Utility Function

An economic model representing the preferences of an individual or entity over a set of goods and services by assigning a level of utility to each potential bundle of consumption.

Indifference Curve

A graph that shows a combination of two goods that give a consumer equal satisfaction and utility, demonstrating their preferences.