PRESENTATION OUTLINE
A resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit.
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.
In the context of accounting, assets are either current or fixed (non-current). Current means that the asset will be consumed within one year.
On a balance sheet, assets are equal to the sum of
liabilities,
common stock,
preferred stock, and
retained earnings.
Intangible assets are non-physical, meaning they cannot be touched. They have value because they represent an advantage to a business or organization.
Tangible assets are those that can be touched. Examples include:
Buildings
Cash on deposit
Cash on hand
Certificates of deposit or CDs
Commercial paper
Corporate bonds
Corporate stock
