It is necessary to have some assets to run a business. Explain the different forms of these
assets with three examples.
Answers
According to the International Financial Reporting Standards (IFRS):
“An asset is a resource controlled by the enterprise as a result of past events and from which future economic benefits are expected to flow to the enterprise”
To give you a general idea of assets, the types that exist are:
- Current
- Fixed
- Physical
- Intangible
- Operating
- Non-operating
Answer:
An asset is a resource owned or controlled by an individual, corporation, or government with the expectation that it will generate future cash flows. Common types of assets include: current, non-current, physical, intangible, operating, and non-operating. Correctly identifying and classifying the types of assets is critical to the survival of a company, specifically its solvency and associated risks.
Explanation:
Examples of assets include:
Cash and cash equivalents
Inventory
Investments
PPE (Property, Plant, and Equipment)
Vehicles
Furniture
Patents (intangible asset)
Stock
Hope it helps you