A thing, person or a quality which is useful or beneficial is termed as an asset, giving this definition a financial turn they are things tangible or intangible that hold an economic value and are held by businesses to extract future benefits. The value of assets is adjudged by the amount it can fetch in monetary terms & that 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 balance sheet will be 1,00,000. This is a tangible asset which is subject to depreciation unlike an intangible asset which is amortized.
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