What are resources that are utilized to generate revenue?

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Study for the Texas Aandamp;M University (TAMU) ACCT229 Exam. Get exam-ready with flashcards, detailed explanations, and multiple choice questions. Enhance your understanding and boost your confidence!

The correct answer is assets. Assets are resources owned by a business that are expected to provide future economic benefits. These resources are utilized to generate revenue through their operation, use, or sale. For example, cash, inventory, property, and equipment are all considered assets and help facilitate the generation of income.

Liabilities represent obligations or debts that the company owes to external parties, reflecting past transactions rather than resources that generate revenue. Expenses are costs incurred in the process of earning revenue; they are not resources in themselves but rather the expenditures that impact profitability. Investments can refer to the purchase of assets or securities intended to generate income, but they are more about allocating resources for potential future returns rather than being classified as fundamental revenue-generating resources. Therefore, assets are the primary category that specifically aligns with the definition of resources used to generate revenue.