In accounting, what is considered an asset?

An asset in accounting is defined as any resource owned by a company that is expected to bring future economic benefits. This encompasses both tangible assets, such as buildings, machinery, and inventory, and intangible assets, like patents, trademarks, and goodwill. The key characteristic of assets is that they contribute to a company's ability to generate revenue, thus holding intrinsic value.

The other options do not align with this definition. For instance, cash and investments are indeed assets, but limiting assets to just these two overlooks the broader scope of resources that a firm may possess. Liabilities, on the other hand, are obligations that a firm must settle in the future and therefore represent what the company owes rather than what it owns. Employee skills and knowledge, while valuable to a business, are not classified as assets on the balance sheet; they do not have a tangible, measurable value that can be recorded in financial statements. Thus, the correct understanding of what constitutes an asset is comprehensively covered by the definition of ownership of both tangible and intangible resources.