Assets an asset is an economic resource. It is money and other valuables belonging to an individual or business.

s. An asset is a resource controlled by the enterprise as a result of past events and from which future economic benefits are expected to flow to the enterprise. The probable present benefit involves a capacity, singly or in combination with other assets. Two major asset classes are tangible assets and intangible assets. Tangible assets contain various subclasses, including current assets and fixed assets. Tangible assets are those that have a physical substance, such as currencies, buildings, real estate, vehicles, inventories, equipment, and precious metals Current assets include inventory(a list of stocks or goods contain in the buildings), while fixed assets include such items as buildings and equipment. Intangible assets are nonphysical resources and rights that have a value to the firm because they give the firm some kind of advantage in the market place. Examples of intangible assets are goodwill, copyrights, trademarks, patents and computer programs. They include patents, copyrights, franchises, goodwill, trademarks, trade names, etc. In the financial accounting sense of the term, It relates assets, liabilities, and owner's equity(capital or company share) Assets = Liabilities + Capital (where Capital for a corporation equals Owner's Equity) Liabilities = Assets - Capital Capital = Assets Liabilities

That is, the total value of a firms Assets are always equal to the combined value of its "equity" and "liabilities." a liability is defined as an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future. Any type of borrowing from persons or

banks for improving a business or personal income that is payable during short or long time. Assets can be divided into e.g. current assets and fixed assets, often with further subdivisions such as cash, receivables and inventory. Assets are formally controlled and managed within larger organizations via the use of asset tracking tools. These monitor the purchasing, upgrading, servicing, licensing, disposal etc., of both physical and non-physical assets. Current assets Current assets are cash and other assets expected to be converted to cash or consumed either in a year or in the operating cycle (whichever is longer), without disturbing the normal operations of a business. There are 5 major items included into current assets, (market liquidity is a market's ability to facilitate an asset being sold quickly without having to reduce its price very much.) 1. Cash and cash equivalents it is the most liquid asset, which includes currency, deposit accounts, and negotiable instruments (e.g., money orders, cheque, bank drafts). 2. Short-term investments include securities bought and held for sale in the near future to generate income on short-term price differences (trading securities). 3. Receivables usually reported as net of allowance for noncollectable accounts. 4. Inventory trading these assets is a normal business of a company. The inventory value reported on the balance sheet is usually the historical cost or fair market value, whichever is lower. This is known as the "lower of cost or market" rule. 5. Prepaid expenses these are expenses paid in cash and recorded as assets before they are used or consumed (common examples are insurance or office supplies). See also adjusting entries. Fixed assets Also referred to as PPE (property, plant, and equipment) land, buildings, machinery, furniture, tools, IT equipment.

 An asset is an important factor in a balance sheet These are also called capital assets in management accounting.