Question

Which of the following describes assets?

a) What an organization owes to its creditors.
b) The total amount of investments in an organization.
c) Things of value owned by an organization.
d) Revenue minus expenses.

Answer 1

Assets are things of value owned by an organization, such as cash, properties, and investments. They are not debts owed (liabilities) or the balance of revenue minus expenses. Assets play a crucial role in determining an organization's net worth or bank capital.

Step-by-step explanation:

The correct answer to which of the following describes assets is c) Things of value owned by an organization. An asset is an item of value that a firm or an individual owns. For instance, cash held in a firm's vaults, monies at a bank, or a house owned are all considered assets. Conversely, a liability is a debt or something an organization or individual owes, such as a mortgage for a home purchase. The difference between total assets and total liabilities is known as net worth or bank capital in the context of a bank's balance sheet, which can indicate the financial health of the institution.