Question

It is necessary to have some assets to run a explain the difference firm of these assets with three examples each​

Answer 1

Answer:

An asset is a resource owned or controlled by an individual, corporation, or government with the expectation that it will generate a positive economic value. 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.

The International Financial Reporting Standards (IFRS) framework defines an asset as follows: “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.”

 



 

Examples of assets include:

Cash and cash equivalents

Accounts Receivable

Inventory

Investments

PPE (Property, Plant, and Equipment)

Vehicles

Furniture

Patents (intangible asset)

 

Properties of an Asset

There are three key properties of an asset:

Ownership: Assets represent ownership that can be eventually turned into cash and cash equivalents

Economic Value: Assets have economic value and can be exchanged or sold

Resource: Assets are resources that can be used to generate future economic benefits