An asset is anything that has value to a company or an individual.
Assets add value and are bought by companies or individuals to create value.
There are two types of assets in
business: -Tangible Assets are those that you can touch or feel such
as cars, buildings, equipment and stationery.
- Intangible assets are things like
shares and bonds traded at the stock market (also known as securities), goodwill, patents and trademarks.
All assets are listed on a company's balance sheet and
are defined as either current (those that are held for less than one
year) or long term (those that are held for more than one year).
Examples of Current Assets
- Cash
- Short-Term investments
- Accounts Receivable
- Stock
Examples of Long Term Assets
- Long-Term investments
- Plants, Property & Equipment
Current and Long-term assets can be both tangible and intangible.