Final answer:
When a business sells a product, it increases its assets by adding to its financial resources.
Step-by-step explanation:
When a business sells a product, it increases its assets. Assets are resources or properties owned by a business that have economic value. In this case, the product being sold is considered an asset because it can generate revenue for the business.
For example, if a company sells a laptop for $1,000, the $1,000 received from the sale will increase the company's assets. The laptop would be considered inventory or a tangible asset until it is sold. In summary, when a business sells a product, it increases its assets because the revenue from the sale adds to the company's financial resources.