Question

multiple choice question
which of the following statements is the best definition of an asset?

assets are resources owned or controlled by a company and that have expected future benefits.
assets are claims against the company.
assets are the distributions to the owners of a company.
assets represent the owners claims against a company.

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Explanation:

• Claims against the company refer to liabilities, not assets.
• Distributions to owners are dividends, not assets.
• Owner's claims against a company are equity, not assets. The correct definition of an asset is a resource controlled/owned by the entity with expected future economic value.

Answer:

A. Assets are resources owned or controlled by a company and that have expected future benefits.