An asset is anything of value that can be converted into cash. Assets are owned by individuals, businesses and governments. Examples of assets include:

Assets are often grouped into two broad categories: liquid assets and illiquid assets. A liquid asset is one that can be converted into cash quickly with little to no effect on the price received. For example, stocks, money market instruments and government bonds are liquid assets. Illiquid assets, on the other hand, are assets that cannot be converted into cash quickly without substantial loss in value. Examples of illiquid assets include houses, antiques and other collectibles.

Your net worth is calculated by subtracting your liabilities from your assets. Essentially, your assets are everything you own, and your liabilities are everything you owe. A positive net worth indicates that your assets are greater than your liabilities; a negative net worth signifies that your liabilities exceed your assets.

  1. Are stocks real assets?

    Learn why stocks are classified as financial assets, not real assets. Understand the properties that determine whether an ... Read Answer >>
  2. What items are considered liquid assets?

    Learn what a liquid asset is, some examples of liquid assets, what a non-liquid asset is and what determines whether as asset ... Read Answer >>
  3. What does your net-worth consist of?

    Discover what your specific assets and liabilities are and how to classify the components that go into calculating your net ... Read Answer >>
  4. Can investments be consumed immediately?

    Learn about what immediate consumption means for assets. Find out how consumption impacts investing choices and planning ... Read Answer >>
  5. When are current assets converted to liquid assets?

    Understand the meaning of the accounting term ''current assets,'' and learn when and how current assets are converted into ... Read Answer >>
  6. What affects an asset's liquidity?

    Learn about what affects an asset's liquidity, including examples of liquid and fixed assets, and how a company's liquidity ... Read Answer >>
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  1. Current Assets

    A balance sheet account that represents the value of all assets ...
  2. Asset Valuation

    A method of assessing the worth of a company, real property, ...
  3. Liquid Asset

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  4. Other Current Assets - OCA

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  5. Financial Asset

    An asset that derives value because of a contractual claim. Stocks, ...
  6. Cash Asset Ratio

    The current value of marketable securities and cash, divided ...
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