Active Asset

DEFINITION of 'Active Asset'

An asset that is used by a business in its daily or routine operations. Active assets can be tangible, such as buildings or equipment, or intangible, such as patents or copyrights. Active assets are listed as assets on the business's balance sheet.

BREAKING DOWN 'Active Asset'

Businesses depend on active assets in order to function on a daily basis. Active assets stand in contrast to passive assets, which may not be needed by the business at a given time in order to operate. Active assets should also not be confused with active asset allocation, which is a type of investment strategy.

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RELATED FAQS
  1. What is the difference between tangible and intangible assets?

    Discover the difference between tangible assets and intangible assets and the types of assets that are in each. Additionally, ... Read Answer >>
  2. What are some examples of fixed assets?

    Learn the difference between fixed tangible assets and fixed intangible assets, and review examples of these two types of ... Read Answer >>
  3. How do intangible assets appear on a balance sheet?

    Understand how various types of intangible assets are handled in a company's accounting and which of them you can find on ... Read Answer >>
  4. What is the difference between current assets and fixed assets?

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  5. Are stocks real assets?

    Learn why stocks are classified as financial assets, not real assets. Understand the properties that determine whether an ... Read Answer >>
  6. How are net tangible assets calculated?

    Learn about net tangible assets, what it measures and how to calculate a company net tangible assets using examples. Read Answer >>
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