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
etc....
On
a balance sheet, assets are equal to the sum of liabilities, common stock,
preferred stock and retained earnings etc... From an accounting perspective,
assets are divided into the following categories:
1. Current assets (Cash & other liquid items)
2. Long-term assets (Real estate, plant, equipment)
3. Prepaid & deferred assets (Expenditures for future costs such as
as insurance, rent, interest)
4. Intangible assets (Trademarks, patents, copyrights, goodwill).
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