Asset

An asset is anything of value that an individual or business owns and can use to generate income, reduce expenses, or create future benefits. Assets can be tangible, like cash, property, and equipment, or intangible, like patents, trademarks, and goodwill. They are an essential part of a company’s balance sheet and are classified into different categories based on their liquidity and usage, such as current assets (easily converted to cash) and fixed assets (long-term resources).

Example

A company’s assets might include cash, inventory, real estate, and intellectual property, all of which contribute to its ability to operate and generate revenue.