Entrepreneurship EOPA Practice Test

Assets are items of value a business owns that appear on the balance sheet. They are resources controlled by the company with expected future benefits, such as cash, accounts receivable, inventory, and property or equipment. The balance sheet presents assets, liabilities (what the company owes), and equity (the owners’ claim) at a specific moment. Revenue, by contrast, is income from selling goods or services and is shown on the income statement; it affects equity over time but isn’t listed as an asset. Equity represents the owners’ stake after liabilities are accounted for.