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 the stockholders and/or creditors

Question

Quizplus · Accepted Answer

Assets are items of value that a business owns, which can be used to generate revenue. They can be financed through a combination of stockholders' equity (investments by owners) and creditors (loans or credit). Therefore, assets do not need to be lower than liabilities, and they are not the same as expenses because they can be acquired through means other than cash.

Assets Are