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Assets

Resources of business are called assets. Any thing which is purchased by business or company for the purpose of using in business will be the assets. When we make financial statements of company, it is showed in balance sheet. We show all assets with their book value in balance sheet. Assets are divided into current assets and fixed assets. Depreciation is deducted only from fixed assets. Assets can also be divided on the basis of their physical existence. All assets which can be touched will be tangible assets and all assets which can not be touched and we can just take their benefits in market place, all these assets will be intangible assets.

Examples of Assets

A. Fixed Assets

1. land
2. buildings
3. machinery
4. furniture
5. tools
6. real estate
7. vehicles
8. equipment
9. precious metals
10. Live Stock

B. Intangible Assets

2. copyrights
3. trademarks
4. patents
5. computer programs
6. franchises
7. trade names

C. Fixed Assets in the form of Long-term investments

1. In the form of securities such as bonds, common stock, or long-term notes.
2. In the form of  fixed assets not used in operations (e.g., land held for sale).
3. By creating special funds (e.g., sinking funds or pension funds).

D. Current Assets

1. Cash and cash equivalents
2. Short-term investments
3. Receivables
4. Inventory
5. Prepaid expenses

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Accounting Education: Assets
Assets
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Accounting Education
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