It is anything (tangible or intangible) that can be used to produce positive economic value.1 puntoDividendsExpensesAssetsLiabilities
Question
It is anything (tangible or intangible) that can be used to produce positive economic value.
1 punto
- Dividends
- Expenses
- Assets
- Liabilities
Solution
Break Down the Problem
- Identify the definitions of each option given: Dividends, Expenses, Assets, Liabilities.
- Determine which option relates to the concept of producing positive economic value.
Relevant Concepts
- Dividends: Payments made to shareholders from a corporation's profits.
- Expenses: Costs incurred in the process of generating revenue.
- Assets: Resources owned by a business that can provide future economic benefits.
- Liabilities: Obligations that a company owes to outside parties.
Analysis and Detail
- Dividends are a form of profit distribution and do not produce economic value themselves.
- Expenses reduce economic value by representing costs incurred.
- Assets are the resources that can create future economic value, as they can be used to generate revenues.
- Liabilities indicate what a business owes and do not contribute to producing economic value.
Verify and Summarize
The term that best describes anything that can be used to produce positive economic value is Assets, since they are the tangible or intangible resources that can yield economic benefits.
Final Answer
Assets
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