wealtheducation-what_are

What are Assets?

Assets are everything of value that is owned by a person or company. It is money and other valuables belonging to an individual or business.

The two major asset classes are tangible assets and intangible assets.

Tangible assets contain various subclasses, including financial assets and fixed assets. Financial assets include such items as accounts receivable, bonds, stocks and cash; while fixed assets include such items as buildings such as real estate and property and equipment such as machinery and office equipments.

Intangible assets are non-physical resources and rights that have a value to the firm because they give the firm some kind of advantage in the market place. Examples of intangible assets are goodwill, copyrights, trademarks, patents and computer programs. For individuals, intangible assets can be an insurance policy or a trusts that is activated at a later date.

In the financial accounting, The accounting equation relates assets, liabilities, and owner's equity:

Assets = Liabilities + Owners' Equity

The accounting equations are the mathematical structure of the balance sheet.

What are Trademarks?
What are Copyrights?
What are Patents?
What is Goodwill?