EMS Financial Literacy Practice Exam

Assets are resources a business owns that have value and can provide future benefits. They are items controlled by the business as a result of past events and used to operate or grow the business, such as cash, equipment, inventory, buildings, or accounts receivable. The description “Possessions owned to run the business” captures this idea because it focuses on items owned by the business that are used in its operations and have measurable value.

Money owed to others refers to liabilities, not assets. Profits earned in a year describe income or net earnings, not ownership of resources. The amount of taxes due is a liability as well, not an owned resource.