Which term refers to resources of value that a company or individual owns?

• A. Revenue
• B. Assets
• C. Equity
• D. Liabilities

Answer: (B)

Verified step by step guidance

1. Step 1: Begin by understanding the key terms provided in the question: Revenue, Assets, Equity, and Liabilities. Each term has a specific meaning in Financial Accounting.
2. Step 2: Define 'Assets': Assets are resources of value that a company or individual owns, which are expected to provide future economic benefits. Examples include cash, inventory, property, and equipment.
3. Step 3: Define 'Revenue': Revenue refers to the income generated from normal business operations, such as sales of goods or services. It is not a resource owned but rather an inflow of economic benefits.
4. Step 4: Define 'Equity': Equity represents the owner's claim on the assets of the business after deducting liabilities. It is not a resource owned but rather a residual interest.
5. Step 5: Define 'Liabilities': Liabilities are obligations or debts that a company owes to external parties, such as loans or accounts payable. They are not owned resources but rather amounts owed.