What are Assets?

Assets

A thing, person or a quality which is useful or beneficial is termed as an asset, giving this definition a financial turn assets are things tangible or non-tangible that hold economic value and are held by businesses to extract future benefits. The value of asset is adjudged by the amount it can fetch in monetary terms & that is further used in the assets column of a company’s balance sheet.

Examples of assets are Cash, machinery, stock, building, vehicles, receivables, copyrights, patent, logos, patents. Assets can be classified as Current, Fixed, Tangible, Non-tangible etc.

As per the accounting equation > Assets = Capital + Liabilities

 

Example

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. 

 

>Read Contingent Assets