what do you mean by assets ? explain it types
Answers
Answer:
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
Classification of Assets
Assets are generally classified in three ways:
Convertibility: Classifying assets based on how easy it is to convert them into cash.
Physical Existence: Classifying assets based on their physical existence (in other words, tangible vs. intangible assets).
Usage: Classifying assets based on their business operation usage/purpose.