Assets are
A) always lower than liabilities
B) equal to liabilities less stockholders' equity
C) the same as expenses because they are acquired with cash
D) financed by owners and/or creditors

Question

Quizplus · Accepted Answer

Assets are items that have value and can be used to generate revenue or can be sold to generate cash. These assets are financed by both owners (stockholders' equity) and creditors (liabilities). Therefore, option D is correct. Option A is incorrect, as assets can be higher than liabilities in some cases. Option B is also incorrect, as assets can exceed liabilities and stockholders' equity. Option C is incorrect as assets are not the same as expenses.

Assets Are