Which term describes the set of assets such as cash, lines of credit, and owned capital used to fund activities?

• A. Financial Resources
• B. Physical Resources
• C. Human Resources
• D. Budgets

Answer: (A)

Funding assets are described as financial resources. This term covers money and credit a business can call upon to operate, grow, or manage liquidity—cash on hand, available lines of credit, and owned capital such as equity or funds retained in the business. Cash is the most liquid form, lines of credit provide borrowing flexibility, and owned capital represents funds invested by owners or generated through earnings. Budgets are plans for how those resources will be used, not the resources themselves. Physical resources refer to tangible assets like equipment or facilities, and human resources refer to the people who work in the organization. So the set of assets used to fund activities is financial resources.