Asset

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DEFINITION

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 EXPLAINS

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 TERMS
  1. Asset Accumulation

    The increase in the value of financial property and investments over time through ...
  2. Active Asset

    An asset that is used by a business in its daily or routine operations. Active ...
  3. Current Assets

    1. A balance sheet account that represents the value of all assets that are ...
  4. Net Liquid Assets

    A measure that examines a company's net liquid financial assets. The net liquid ...
  5. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable ...
  6. Surplus

    The amount of an asset or resource that exceeds the portion that is utilized. ...
  7. Asset Performance

    A business's ability to take productive resources and manage them within its ...
  8. Alternative Asset

    Any non-traditional asset with potential economic value that would not be found ...
  9. Contingent Asset

    An asset in which the possibility of an economic benefit depends solely upon ...
  10. Asset Valuation

    A method of assessing the worth of a company, real property, security, antique ...
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