asset
Definition
Any item of economic value owned by an individual or corporation, especially that which could be converted to cash. Examples are cash, securities, accounts receivable, inventory, office equipment, real estate, a car, and other property. On a balance sheet, assets are equal to the sum of liabilities, common stock, preferred stock, and retained earnings.From an accounting perspective, assets are divided into the following categories: current assets (cash and other liquid items), long-term assets (real estate, plant, equipment), prepaid and deferred assets (expenditures for future costs such as insurance, rent, interest), and intangible assets (trademarks, patents, copyrights, goodwill).
 Cite this definition
Related Terms
current assets, active asset, fixed asset, net asset value, available assets, capital asset, capital asset pricing model, cash ratio, wasting asset, earning asset, tangible asset, intangible asset, hidden asset, long-term assets, asset-based lending, noncurrent asset, operating asset, paper asset, quick assets, return on assets, alternative assets, plan asset, stranded asset
Related Research Articles from the InvestorGuide.com University
Introduction to Buying a Home
Learn the steps how to make a sound financial decision when buying a house. Understand what considerations are needed when it's time to decide how much to spend and whether it is better to rent or buy a home.
Selling a Home
Looking to sell your home or just to find out the best practice for the process? Learn the steps you need to take to sell your home, and how to get the best price.
Home Equity
Looking for a second mortgage or to borrow against the money you have down on your house? Find out all you need to know in this comprehensive article about home equity.
Featured Sponsor
GE Commercial Finance -
The only asset based lending expert part of a Fortune 5 industrial giant.
|
|
