Asset

Asset

An asset is a resource owned by an individual or entity that is expected to provide future economic benefits. Assets can be tangible or intangible, and they are recorded on the balance sheet of an organization.

Types of Assets:

• Tangible Assets: Physical items that can be touched or measured.
  • Example: Machinery, buildings, vehicles.
• Intangible Assets: Non-physical resources that have value.
  • Example: Patents, Trademarks, goodwill.

Cases of Assets:

In accounting, assets are divided into current and non-current categories:

• Current Assets: Assets expected to be converted into cash or used within one year.
  • Example: Cash, accounts receivable, Inventory.
• Non-Current Assets: Assets that will provide economic benefits over a period longer than one year.
  • Example: Real estate, long-term investments, equipment.