Final answer:
The correct definition of an asset is something of value that a business owns or controls. It is a key component of a balance sheet and is fundamental to illustrating a company's financial health by listing resources that provide economic benefits.
Step-by-step explanation:
Among the options provided, the correct definition of an asset is: A. An asset is something of value that a business owns or controls. This encompasses any item of value that a firm or individual owns which can be utilized to produce goods or services, or can simply be of financial value. Assets are fundamental to a company's balance sheet, which showcases the firm's financial health by listing both assets and liabilities. Examples of assets include cash, real estate, inventory, and investments.
These assets are opposed to liabilities, which represent debts or obligations owed by the business. The difference between a company's total assets and total liabilities is known as the company's net worth or equity. Hence, while assets contribute to a company's value, liabilities represent claims against those assets. For banks, assets might include cash reserves, loans given to customers, and investments in securities. Liabilities, in contrast, would include customer deposits and any money the bank owes.