check Mark for close action
Try AccountingSuite™
for free
No credit card needed
Return to Glossary


Assets: Anything that a company owns and has value, such as cash, property, inventory, or equipment.

In accounting, assets are resources owned by a company that have measurable value and are expected to provide future economic benefits. Assets can be tangible or intangible and are typically classified as current or non-current on a company's balance sheet.

Tangible assets are physical assets that can be seen and touched, such as cash, property, inventory, and equipment. Cash is the most liquid asset, as it can be readily used to pay for goods and services. Property refers to land, buildings, and other real estate owned by the company. Inventory includes goods and materials held for sale or production. Equipment includes machinery, vehicles, furniture, and other physical assets used in the production of goods and services.

Intangible assets are non-physical assets that lack a physical substance but still have value, such as patents, trademarks, copyrights, goodwill, and intellectual property rights. These assets are usually created or acquired by a company and provide economic benefits over time.

Current assets are those that can be easily converted into cash within one year or one operating cycle, whichever is longer. Examples of current assets include cash, accounts receivable, inventory, and short-term investments. These assets are important for a company's liquidity and ability to meet short-term obligations.

Non-current assets, also known as long-term assets, are those that are not expected to be converted into cash within one year or one operating cycle. Examples of non-current assets include property, plant, and equipment, as well as intangible assets like patents and trademarks. These assets provide long-term benefits to the company and are typically used in the production of goods or services.

Overall, assets are an important component of a company's financial position and provide valuable information for investors, creditors, and other stakeholders. The value and composition of a company's assets can be used to evaluate its financial health, growth potential, and overall performance.