Posted in Finance, Accounting and Economics Terms, Total Reads: 1009
Assets are anything that is a resource for an organization, anything that can be used to convert into cash. These are resources that add some positive value to the organization and are useful for the business.
Assets can take both tangible and intangible forms.
Some of the common tangible assets are: Land, Plant, property, cash.
Some of the common intangible assets are goodwill, patent, copyright.
Assets are found on the balance sheet of any organization and total assets of an organization should be equal to the total liabilities at any instant of time.
They can also be divided into current and fixed assets. Current assets are those which have a life of less than a year such as inventory, cash etc. while fixed assets are generally for a longer term like land, property, plant etc.