Assets
Economic resources owned by the company
Assets can be defined as any valuable resource or item that a person or company owns, which can be used to generate income or provide future benefits. Examples of assets include cash, stocks, bonds, real estate, vehicles, equipment, and intellectual property.
Assets can be classified into two categories: current assets and fixed assets. Current assets are those that can be converted into cash quickly, usually within one year. Examples of current assets are cash, accounts receivable, inventory, and prepaid expenses. Fixed assets, on the other hand, are long-term assets that are held for more than one year. Examples of fixed assets are land, buildings, equipment, and vehicles.
Assets play a crucial role in financial management as they can be used to generate income and build wealth. When managing assets, it is important to monitor their value and ensure that they are being used effectively to achieve financial goals. Additionally, it is important to protect assets from risks such as theft, damage, or loss.
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