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).
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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
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