Which of the following best describes assets?

A) Resources with possible future economic benefits owed by an entity as a result of past transactions.
B) Resources with probable future economic benefits owned by an entity as a result of past transactions.
C) Resources with probable future economic benefits owned by an entity as a result of future transactions.
D) Resources with possible future economic benefits owed by an entity as a result of future transactions.

Question

Maddie Kerrigan · Accepted Answer

Final Answer : B, Explanation :  Assets are resources owned by an entity that are expected to provide probable future economic benefits as a result of past transactions or events. Option B correctly describes this concept. Option A includes the word owed, which is incorrect as assets are owned, not owed. Option C includes the word future, which is incorrect as assets are the result of past transactions. Option D includes the word owed and future, both of which are incorrect. Therefore, option B is the best answer.

Definitions

Learning Objectives

Learning Objectives

Related questions