An asset is a resource that has economic value and is expected to provide future benefits to its owner. Assets can be both tangible, such as buildings, land, and equipment, or intangible, such as patents, trademarks, and copyrights. Assets are a key component of an organization’s balance sheet and are used to generate revenue or support the organization’s operations.
Assets can be categorized as current or non-current. Current assets are those that are expected to be converted into cash or used within one year, such as inventory, accounts receivable, and cash. Non-current assets, on the other hand, are those that are not expected to be converted into cash or used up within one year, such as long-term investments, property, plant, and equipment. The value of an asset is typically calculated as its historical cost, minus any accumulated depreciation or impairment losses, and is reported on an organization’s financial statements.