What term describes resources owned by a company?

The term that describes resources owned by a company is "assets." Assets represent the valuable resources that a company controls and can use to generate future economic benefits. They can include cash, inventory, buildings, equipment, and investments. Understanding assets is crucial as they are a core component of a company's balance sheet, reflecting the company's financial health and operational capacity.

In contrast, liabilities represent obligations that the company must settle in the future, such as loans or accounts payable. Equity refers to the ownership interest in the company, which is what remains after liabilities are subtracted from assets. Expenses relate to costs incurred in the process of generating revenue and affect the company's income statement rather than its balance sheet. By grasping the concept of assets, one gains insight into the foundation on which a company's operations and growth are built.