Which Of The Following Statements Is The Best Definition Of An Asset?
The correct option is (a), as Assets are resources owned, managed and controlled by the company from which the company expect to get probable future economic benefits. For example, Cash is a Current Asset which is owned and controlled by the company to get future benefits i.e., cash is used to purchase merchandise for resale purpose in order to earn revenue by selling merchandise to customers on selling price. In case of Prepaid Rent , rent paid in advance to acquire property on rent in order to operate the business and ultimately, earns revenue from profitable activities conducting on rental property. Assets create value for the company’s business such as Goodwill , which is an Intangible Asset , create the value of the business in the minds of customers in the form business good name and reputation, customer satisfaction, brand identity and awareness, etc. Assets increase efficiency of operations as when most advanced tools are used to operate the business activities, it ...