Assets for a Company

Assets

Question

Which of the following would a company consider an asset?

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

B.

A company considers an asset to be any resource that has future economic value and is expected to provide a benefit to the company. Assets can be tangible or intangible, and they can be owned by the company or leased.

Let's examine each option provided to determine whether it could be considered an asset by a company:

A. An external company used to destroy defective hard drives: This is not an asset as it does not have future economic value or provide a benefit to the company. Instead, it is a service that the company utilizes to dispose of defective hard drives.

B. Information residing on backup tapes: This could be considered an asset as it has future economic value and provides a benefit to the company. If the company were to lose their data due to a disaster, having the information on backup tapes would allow them to restore their data and continue their operations.

C. A company-sponsored technology conference: This is not an asset as it does not have future economic value or provide a benefit to the company. Instead, it is an event that the company sponsors to promote technology awareness and networking opportunities.

D. A certified third-party vendor that provides critical components: This could be considered an asset as it has future economic value and provides a benefit to the company. If the company relies on the critical components provided by this vendor to operate their business, having a reliable and certified third-party vendor helps ensure business continuity and minimizes downtime.

In summary, option B and option D could be considered assets by a company as they have future economic value and provide a benefit to the company.