Asset Definition

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Definition Of Asset:

Something valuable that an entity owns, benefits from, or has use of, in generating income.
In accounting, an asset is something an entity has acquired or purchased, and which has money value (its cost, book value, market value, or residual value). An asset can be (1) something physical, such as cash, machinery, inventory, land and building, (2) an enforceable claim against others, such as accounts receivable, (3) right, such as copyright, patent, trademark, or (4) an assumption, such as goodwill. Assets shown on their owner's balance sheet are usually classified according to the ease with which they can be converted into cash. See also intangible assets and tangible assets.Other definition of Asset- 1. A resourcewith economic value that an individual, corporation or countryowns or controlswith the expectation that itwillprovide future benefit.A balance sheet item representing what a firm owns. Assets are bought to increase the value of a firm or benefit the firm's operations.You can think of anassetas something that can generate cash flow, regardless ofwhether it's acompany's manufacturing equipment or an individual's rental apartment. In the context of accounting, assets are either current or fixed (non-current). Current means that the asset will be consumed within one year. Generally, this includesthings likecash, accounts receivable and inventory. Fixed assets are those that are expected to keep providing benefit for more than one year, such as equipment, buildings and real estate.

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