Which statement is true regarding the nature of assets?

Assets are resources owned by a business that are expected to provide future economic benefits. This characteristic is fundamental to the definition of an asset in accounting. When a business acquires an asset, such as property, equipment, or inventory, it is anticipated that these resources will contribute to future revenue generation or support operations in a way that adds value to the company.

The concept of providing probable future benefits underscores the importance of evaluating an asset's potential contribution to a business's financial performance. For instance, investments in machinery can enhance production efficiency, leading to increased sales and profitability over time.

The other choices do not accurately reflect this fundamental understanding of assets. For instance, not all assets decrease in value; some may appreciate over time or maintain their value. Additionally, assets encompass a wide range of items beyond just cash and cash equivalents, including physical goods, intangible assets, and investments. Lastly, while liabilities reflect what a company owes, they are a separate category from assets, which show what a company owns. Thus, the statement regarding assets providing probable future benefits is the most accurate.