Is investment an asset?
Can asset be termed as an investment?
Answers
First of all, let's understand what an asset is. Economic resources of the entity which will give benefit in the future. A few examples of assets are land, building, machinery, furniture, stock, debtors, etc. Investment is also an example of asset. Investment refers to deployment of funds in shares of companies with interiors to earning returns, interest or dividend.
So, investment is an asset. Asset cannot be termed as an investment as investment is an example of asset and not the vice-versa.
More information about assets:-
Assets are the properties (tangible assets and intangible assets) owned by an entity or enterprise. They are the economic resources of the business. Anything which will enable the firm to get an economic benefit in the future, is an asset.
"Assets are future economic benefits, the rights, which are owned or controlled by an organisation or individual." – Finney and Miller
"Assets are valuable resources owned by a business which are acquired at a measurable money cost." – Prof. R.N. Anthony
Answer:
Defining Long-Term Investment Assets
Long-term investment assets on a balance sheet are typically investments a company has made to help it sustain a successful and profitable future. These could include stocks or bonds from other companies, Treasury bonds, equipment, or real estate.