Which of the following is an example of an asset item?

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Multiple Choice

Which of the following is an example of an asset item?

Explanation:
Assets are resources owned or controlled by a business from which future economic benefits are expected. A license fits this, because holding a license provides a right that the company can use to operate or access a service, and that right is recorded as an asset on the balance sheet (often as an intangible asset). Revenue is income that increases equity but is not a resource the company owns. Liabilities are obligations to others, not assets. Expenses are costs recognized in the period to generate revenue, not assets.

Assets are resources owned or controlled by a business from which future economic benefits are expected. A license fits this, because holding a license provides a right that the company can use to operate or access a service, and that right is recorded as an asset on the balance sheet (often as an intangible asset). Revenue is income that increases equity but is not a resource the company owns. Liabilities are obligations to others, not assets. Expenses are costs recognized in the period to generate revenue, not assets.

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