Question

A thing of value owned by an economic enterprise is ________________.

• A. Asset
• B. Liability
• C. Income
• D. Expenses

Answer 1

Answer: (A)

Asset

All the properties, possessions and debts owing to a business house are known collectively as assets.

Assets are further classified as Fixed Assets and Current Assets.

Current Assets arises in the business during the course of business. These are short term and fluctuating. With every business transactions current assets gets changed. Examples are Sundry Debtors, Inventories, Bills receivables, Cash on hand, Cash at Bank etc.

Fixed Assets are those which are taken by the business for longer duration. These assets provides the benefits to the business for a longer period. Land, Building, Plant, Furniture are the example of fixed assets.