Which term refers to the cash, inventory, property, plant, and equipment, and other investments a company has made?

• A. Assets
• B. Balance Sheet
• C. Equities
• D. FICA

Answer: (A)

Assets are resources a company controls that arise from past events and are expected to bring future economic benefits. The items listed—cash, inventory, property, plant and equipment, and other investments—are all resources the company owns and uses in its operations, so they are classed as assets. They appear on the balance sheet under the assets section.

Equities refer to the owners’ claims on the company, not the resources themselves. A balance sheet is the financial statement that lists assets, liabilities, and equity, not the term for these items. FICA is a payroll tax, not a category of company resources.