What is an Asset?
An asset is a resource of value owned by an individual, a company, or a country. Assets are reported on a company's balance sheet and can be converted into cash, even though cash is also considered an asset
Types of Assets
Current Assets / Noncurrent Assets
Current assets are short-term assets such as cash, or any asset that can be converted into cash in less than a year. This includes cash and cash equivalents, short-term deposits, inventory, ...
Noncurrent assets are on the contrary long-term assets that are not easily convertible to cash in less than a year. This includes investments, intangible assets, and fixed assets such as real estate, warehouses, machinery, vehicles, ...
Tangible Assets / Intangible Assets
Tangible assets are assets that generally have a physical form. This includes furniture, equipment, raw materials, inventory, ...
Intangible assets are non-physical assets that have a theoretical value and must be accounted for on the balance sheet. This includes patents, trademarks, copyrights, and goodwill.