Certified Medical Administrative Assistants (CMAA) Practice Exam 2025 - Free CMAA Practice Questions and Study Guide

Assets refer to resources owned by an entity that provide future economic benefits. Cash is a clear example of an asset because it is a liquid resource that can be used for transactions, investments, or to cover expenses. It represents the most straightforward asset, as it can easily be accessed and utilized.

In contrast, bank loans are considered liabilities because they represent money that the entity owes to creditors. Liabilities are obligations that must be settled in the future, which is the opposite of assets. Similarly, expenses reflect outflows of resources and are recorded on the income statement, making them a part of the financial activity but not an asset in the balance sheet context. Therefore, cash is included in the assets section of a balance sheet, representing ownership and availability for use.