Asset - Financial definition
Financial acronyms
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Concise definition of the term asset
In accounting, the term asset refers to a resource that a company or an individual owns, and which has economic value and is expected to provide future benefits. Assets can be physical items like cash, inventory, and property, as well as intangible items like patents, trademarks, and goodwill.
Comprehensive definition of the term asset
Assets are a key component of the balance sheet in accounting, where they are categorized into current assets (those expected to be used or converted into cash within one year) and non-current assets (those with a longer useful life).
The total assets of an entity represent its wealth or value and their analysis is an important component in the assessment of its financial health and performance.