Asset

An asset is a useful or valuable thing, person, or quality. In business terms, it is a thing of value owned by a company that can be applied toward improving its competitive position or settling debts, or offsetting liabilities.

Investopedia defines assets in investment terms as a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit.

• Assets are reported on a company's balance sheet.
• They are bought or created to increase a firm's value or benefit the firm's operations.
• An asset is something that may generate cash flow, reduce expenses or improve sales, regardless of whether it's manufacturing equipment or a patent.
• Assets can be classified as current, fixed, financial, or intangible.

See Also

• Goodwill