Assets Slide

Slide Depicts Concept and Examples of Assets

What is an Asset?

Slide showing various assets as an example

Meaning and Definition:

The dictionary meaning of the word ‘Asset; is a useful or valuable thing or person. In accounting parlance, however, person is kept outside the scope for the present, animals and plants are included though, and includes all things living or non-living, tangible or intangible, valuable rights and so on.

Another way defining is, what is owned is an asset and what is owed is a liability.

Assets are employed in the business either for a short time as stock-in-trade - that is meant for further sale, or for the long-term use for producing the goods and services.

In the double entry system of accounting, universally practiced, assets have a debit balance. Therefore all items appearing in the balance sheet and having a debit balance are assets.

Examples:

Tangible	Intangible	Living	Moving
Land	Bank Balance	Trees	Trucks
Buildings	Goodwill	Grass	Cars
Plant	Brand Value	Cattle	Ships
Machinery	Mining Right	Poultry	Aircraft
Cash	Software	Fish	Trains
Inventory	Receivables from customers	Horses	Motorcycles

Conclusion:

Assets are useful and valuable things, owned by the business and employed either for short-term as stock-in-trade or long-term as fixed assets.

Further Reading:

• Current Assets
• Fixed Assets
• Tangible Assets

Asset Definition

Asset

In the subject matter of ‘Investing’, Asset means something that has the potential to generate a stream of regular income over its lifetime. Besides recurring income, sometimes an asset may also be capable of producing a capital appreciation (a gain in the capital value of the asset itself). Examples are:

Various Classes of Assets

In ‘Value Investing’, those assets that have the potential to yield a return only through price increase are not considered as true assets. Capital appreciation should be an added advantage or bonus in addition to recurring income and not the only source of income.