Question

Which of the following is true of assets?

-assets do not need to provide future benefit to the business
-assets are something of value that the business owns or controls
-assets include cash, merchandise inventory, and accounts payable
-assets can be recorded at the market value if acquired at a bargain

Answer 1

The true statement about assets is that they are valuable items owned or controlled by a business and must provide future benefit, including things like cash and merchandise inventory.

Step-by-step explanation:

Of the statements provided, the one that is true of assets is that assets are something of value that the business owns or controls. Assets must provide a future benefit to the business; this is why something with no potential to generate future economic value is not considered an asset. Assets often include items like cash, equipment, real property, and merchandise inventory, but not accounts payable since that is a liability. Lastly, on a balance sheet, assets are typically recorded at the cost at which they were acquired, not necessarily their market value, unless specific accounting standards allow or require alternative valuations.