Business Asset

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Internal Claim

    A claim by a creditor that is restricted to the business's assets ...
  2. Capital Asset

    A type of asset that is not easily sold in the regular course ...
  3. Asset Stripper

    An individual or company, which purchases a corporation with ...
  4. Inventory

    The raw materials, work-in-process goods and completely finished ...
  5. Tangible Asset

    Assets that have a physical form. Tangible assets include both ...
  6. Intellectual Capital

    The value of a company or organization's employee knowledge, ...
Related Articles
  1. Forex Education

    Using The Price-To-Book Ratio To Evaluate Companies

    The P/B ratio can be an easy way to determine a company's value, but it isn't magic!
  2. Investing Basics

    5 Things To Know About Asset Allocation

    Overwhelmed by investment options? Learn how to create an asset allocation strategy that works for you.
  3. Bonds & Fixed Income

    Understanding Capital And Financial Accounts In The Balance Of Payments

    The current, capital and financial accounts compose a nation's balance of payments.
  4. Markets

    Intangible Assets Provide Real Value To Stocks

    Intangible assets don't appear on balance sheets, but they're crucial to judging a company's value.
  5. Options & Futures

    Financial Concepts

    Diversification? Optimal portfolio theory? Read this tutorial and these and other financial concepts will be made clear.
  6. Markets

    Introduction To Fundamental Analysis

    Learn this easy-to-understand technique of analyzing a company's financial statements and reports.
  7. Active Trading Fundamentals

    What is liquidity risk?

    Learn how to distinguish between the two broad types of financial liquidity risk: funding liquidity risk and market liquidity risk.
  8. Technical Indicators

    What is a good gearing ratio?

    Understand the meaning of the gearing ratio, how it is calculated, the definition of high and low gearing, and how they reflect relative financial stability.
  9. Fundamental Analysis

    What is a good interest coverage ratio?

    Learn the importance of the interest coverage ratio, one of the primary debt ratios analysts use to evaluate a company's financial health.
  10. Fundamental Analysis

    What is a bad interest coverage ratio?

    Understand how interest coverage ratio is calculated and what it signifies, and learn what market analysts consider to be an unacceptably low coverage ratio.

You May Also Like

Hot Definitions
  1. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  2. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  3. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  4. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  5. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
  6. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
Trading Center