What term refers to objects that are owned by a business?

• A. Liabilities
• B. Assets
• C. Investments
• D. Equity

Answer: (B)

The term that refers to objects owned by a business is assets. Assets include everything that a business possesses that has economic value, such as cash, inventory, buildings, machinery, and equipment. These items are essential for the operation of the business and can be utilized to generate income. In a business's financial statements, assets are crucial for understanding the overall financial health and capabilities to fund operations.

Liabilities, on the other hand, represent obligations that a business owes to outside parties, such as loans and accounts payable. Investments generally refer to financial assets or resources allocated with the expectation of generating a return, which may include stocks, bonds, or real estate, but do not automatically imply ownership of tangible goods within the operational framework of a business. Equity refers to the ownership interest in the business, calculated as assets minus liabilities, rather than the objects themselves. Therefore, assets is the precise term that encapsulates what a business owns.