The asset category within the statement of financial position:

A) Are always equal to total liabilities minus shareholders' equity.
B) Represent items acquired with the use of the firm's assumed liabilities and equity.
C) Are listed in order of increasing liquidity.
D) Do not include intangible assets.
E) Provide an indication of revenues less expenses.

Question

Sharina Rhoden · Accepted Answer

Final Answer : B, Explanation :  Assets represent resources controlled by the firm as a result of past events and from which future economic benefits are expected to flow to the entity. They are acquired through the use of the firm's capital, which includes both liabilities (what the firm owes) and equity (owners' claims on the firm's assets).

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