Assets
In a broad sense an asset is simply another word for an item that
is owned by somebody. Anything that is owned by a business, company,
individual or government that can be sold to make cash is considered
an asset. Your house is a valuable asset; your car is an asset
although it loses its value. In a strict sense even your jogging
shorts are an asset, in that you could probably sell them or use the
material in some profitable manner. Generally though, assets refer
to things that are actually worth selling as part of a business. For
example a business in liquidation may “sell its assets” which may be
its stock, machinery, buildings etc.
It’s not just tangible items that are considered assets, but
intangible assets as well. These may include stocks and shares,
contracts, agreements, futures, accounts and so on. In today’s age
knowledge is a huge asset and can be sold, in information products
or on your job CV.
In business and accounting there are several types of assets.
Current Assets are a business’ cash, stock or other items that are
expected to convert in to cash within a year. For example a
shopkeeper’s till money and the products on the shelves are current
assets.
Fixed Assets are assets that tend to be fixed in position and are
needed for long term profit making, such as buildings, warehouses
and machinery.
Other things that are considered assets are long term investments
and things like copyrights and patents because they can be sold if a
business venture goes bust.
For individuals assets that are really considered to be worth money
are houses, vehicles, expensive jewelry and electronics. If bailiffs
are sent to take items to cover somebody’s debts they will go
straight to TV’s and other electronics.