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Asset

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Dictionary Says

Definition of 'Asset'

1. A resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit.

2. A balance sheet item representing what a firm owns.
Investopedia Says

Investopedia explains 'Asset'

1. Assets are bought to increase the value of a firm or benefit the firm's operations. You can think of an asset as something that can generate cash flow, regardless of whether it's a company's manufacturing equipment or an individual's rental apartment.

2. 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 includes things like cash, 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.

Related Definitions

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    Alternative Asset

    Any non-traditional asset with potential economic value that would not be found in a standard investment portfolio. Due to the unconventional nature of alternative assets, valuation of ...
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  • Asset Valuation

    The process of determining the current worth of a portfolio, company, investment, or balance sheet item.
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  • Current Assets

    1. A balance sheet account that represents the value of all assets that are reasonably expected to be converted into cash within one year in the normal course of business. Current assets ...
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    • Intangible Asset

      An asset that is not physical in nature. Corporate intellectual property (items such as patents, trademarks, copyrights, business methodologies), goodwill and brand recognition are all ...
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    • 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. ...
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    • Marquee Asset

      A company's most prized asset, one that is a highly visible symbol of its success and often the biggest contributor to its bottom line. A company with a coveted marquee asset may become ...
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    • Net Liquid Assets

      A measure that examines a company's net liquid financial assets. The net liquid assets show how much of a company's liquid assets would be left if all current liabilities were paid ...
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    • Tangible Asset

      Assets that have a physical form. Tangible assets include both fixed assets, such as machinery, buildings and land, and current assets, such as inventory. The opposite of a tangible ...
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    • Contingent Asset

      An asset in which the possibility of an economic benefit depends solely upon future events that can't be controlled by the company. Due to the uncertainty of the future events, these ...
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    • Asset Performance

      A business's ability to take productive resources and manage them within its operations to produce subsequent returns. Asset performance is typically used to compare one company's ...
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