Question

Assets:

a. Represent the amounts earned by a company.
b. Must equal the liabilities of a company.
c. Must equal the stockholders' equity of the company.
d. Represent the resources presently controlled by a company.

Answer 1

Assets represent the resources presently controlled by a company. They are recorded on the left side of a T-account, while liabilities are recorded on the right side. The net worth of a company is calculated by subtracting the total liabilities from the total assets.

Step-by-step explanation:

In accounting, assets represent the resources presently controlled by a company. They can include cash, accounts receivable, inventory, equipment, and other tangible or intangible items that have value. Liabilities, on the other hand, represent what the company owes to others, such as loans or accounts payable.

Assets are recorded on the left side of a T-account, while liabilities are recorded on the right side. The net worth of a company, also known as stockholders' equity or owner's equity, is calculated by subtracting the total liabilities from the total assets.

Therefore, the correct answer is (d) Represent the resources presently controlled by a company.