A house is an asset that typically will ________ value over time.

• A. decrease in
• B. increase in
• C. lose all
• D. remain the same in

Answer: (B)

Verified step by step guidance

1. Understand the concept of an asset: In financial accounting, an asset is something of value owned by an individual or entity that is expected to provide future economic benefits.
2. Consider the nature of a house as an asset: Houses are typically considered long-term assets and are subject to market conditions, location, and demand, which influence their value over time.
3. Evaluate the typical behavior of house value: Historically, houses tend to appreciate (increase in value) over time due to factors such as inflation, improvements, and growing demand in desirable areas.
4. Analyze the options provided: 'Decrease in value,' 'increase in value,' 'lose all value,' and 'remain the same in value.' Based on the nature of houses as assets, the most accurate choice is 'increase in value.'
5. Conclude the reasoning: Houses are generally expected to increase in value over time, making them a common investment choice for individuals seeking long-term financial growth.