A thing, person, or a quality which is useful or beneficial is termed as an asset. In the financial world, assets are things tangible or intangible that hold an economic value and are held by businesses to extract future benefits. Their value is adjudged by the amount they can fetch in monetary terms & that number is further used in the appropriate column of a company’s balance sheet.
Examples of assets – Cash, machinery, stock, building, vehicles, receivables, copyrights, patent, logos, patents. They can be classified as Current, Fixed, Tangible, Intangible etc.
A firm bought a new printer for official purpose priced at 1,00,000. The printer, in this case, is an asset to the business and the amount to be booked in the balance sheet will be 1,00,000. This is a tangible asset which is subject to depreciation, unlike an intangible asset which is amortized.
Short Quiz for Self Evaluation
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