Business Asset


DEFINITION of 'Business Asset'

A piece of property or equipment purchased exclusively or primarily for business use. Business assets span many categories, such as vehicles, real estate, computers, office furniture and other fixtures. Much of the start-up capital for many businesses goes toward the purchase of this type of asset. Business Assets are listed on the firm's balance sheet as items of ownership.

BREAKING DOWN 'Business Asset'

Most business assets can be written off and either depreciated according to the appropriate schedule or expensed under section 179 in the year of purchase. Business assets are different from business expenses, which include supplies and small tools and are simply deducted. Fixed business assets such as real estate and tangible property differ from current assets such as receivables.

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  1. Does working capital include inventory?

    A company's working capital includes inventory, and increases in inventory make working capital increase. Working capital ... Read Full Answer >>
  2. Does working capital include salaries?

    A company accrues unpaid salaries on its balance sheet as part of accounts payable, which is a current liability account, ... Read Full Answer >>
  3. Are dividends considered an asset?

    Whether dividends paid on stock are considered an asset depends on which role you play in the investment: the issuing company ... Read Full Answer >>
  4. What is a profit and loss (P&L) statement and why do companies publish them?

    A profit and loss (P&L) statement, or balance sheet, is essentially a snapshot of a company's financial activity for ... Read Full Answer >>
  5. How do dividends affect the balance sheet?

    Dividends paid in cash affect a company's balance sheet by decreasing the company's cash account on the asset side and decreasing ... Read Full Answer >>
  6. Who actually declares a dividend?

    It is a company's board of directors who actually declares a dividend. The declaration date is the first of four important ... Read Full Answer >>

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