Assets have productive capacity; they are assets used to produce goods and services. assets are claims on real assets or the income generated by them. a) trueb) false

Assets have productive capacity; they are assets used to produce goods and services. TRUE

Assets are claims on real assets or the income generated by them. FALSE

Explanation:

It is a correct assertion that 'assets' have productive capacity and that they are assets used to produce goods and services because by definition an asset is a resource that can be used to produce value and that is held by a company to produce positive economic value

BUT

The assertion that 'assets are claims on real assets or the income generated by them' is FALSE because that is the meaning of liabilities. Liabilities by definition are claims on assets, which defines both liabilities and owners' equity.

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