Rock the 2026 FPC Exam – Master Payroll Fundamentals with Confidence!

An asset for a business is defined as a resource that has economic value and can be owned or controlled to produce value. This encompasses things like cash, inventory, equipment, and property. The correct choice highlights that an asset is a resource consumed by the business, as it implies ownership of something that contributes to the generation of revenue and can support the operations and growth of the company.

In contrast, the other options do not meet the definition of an asset. A debt owed to creditors represents a liability, which is an obligation that a business must settle in the future. A fixed cost of doing business refers to ongoing expenses that do not change with the level of production or sales, and while important for financial planning, they are not tangible resources. Revenue from product sales is the income generated from operations but does not represent a resource owned or controlled by the business. Thus, the understanding of assets is crucial for assessing a company’s financial health, as they play a vital role in its ability to generate revenue and sustain operations.