Material or monetary resources owned by someone or corporation. Most assets can be converted into cash at some point and become liquid when traded in the marketplace. Assets can be divided into the next categories:
- First one is Current Assets. Cash, short term investments, inventory and other items anticipated to be changed to sold, cash or consumed.
- Secondly Long-term Assets, investments held for several years, like real-estate, bonds, securities and pensions
- Third one is Fixed Assets. Purchased for continued and long-term use in earning a profit, like land, buildings, machinery, furniture, tools and insurance
- Fourth one is Intangible Assets. Items lacking physical substance, such as for example patents, trademarks and copyrights