Question

Economic resources that are expected to generate future cash flows or reduce cash outflows are known as _________.

• A. Cash profit
• B. Assets
• C. Net worth
• D. Investment

Answer 1

Answer: (B)

Assets

Any amount incurred to establish the business which gives the benefit to the business in future for long time is considered as asset. Assets generate the cash flow in future depending on the span of the life of the asset.