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Assets

Assets (Definition)​

Assets are resources owned or controlled by a company that have economic value and are expected to provide future benefits. They are reported on a companys balance sheet and can be tangible or intangible.

Key points about assets include:

  1. Classified as current (short-term) or non-current (long-term) assets
  2. Include items such as cash, inventory, property, equipment, and investments
  3. Can be physical (tangible) or non-physical (intangible)
  4. Used to generate revenue and support business operations
  5. Reported at their cost or fair market value, depending on accounting standards
  6. Subject to depreciation, amortization, or impairment over time
  7. Important for assessing a companys financial health and value Understanding and managing assets is crucial for maintaining financial stability and driving business growth.