Which of the following best defines assets?

The best definition of assets is that they are something owned and used by the business. Assets are resources that a company controls and that have economic value, which can provide future benefits. This includes items such as cash, inventory, property, equipment, and investments. Understanding assets in this way helps in grasping the foundational concepts of accounting, including how businesses manage resources to generate revenue.

In contrast, debt owed by the business pertains to liabilities, which are obligations the company must settle in the future. The owner’s financial interest in the business relates to equity, reflecting the value of the owner’s stake after all liabilities are settled. Money withdrawn from the business, often called drawings, reduces the owner's equity and does not constitute an asset of the business. This clarity around assets is vital for accurate financial reporting and analysis.