Assets, Introduction, What is assets?, defination of assets/ Types of assets

Defination :

Assets: Assets refer to resources or assets owned by any person, organization, or business, from which future economic benefits can be derived. 

All types of assets owned by a business organization are called assets. Assets are purchased for future use, not for sale.

Types of assets:

1. current assets : Assets that can be converted into cash multiple times within a year are called current assets. These types of assets have a short life span, or only one year. Examples of current assets are cash, closing stock, accounts receivable, bank balances, advances, short-term investments, bills receivable, etc.

2. Fixed assets/ Tangible assets : All assets purchased for long-term use are called fixed assets. These types of assets have a long life. For example, real estate, machinery, vehicles, furniture, etc. are fixed assets.

3. Intangible assets : Assets that have no real physical existence can be valued based on various criteria, but it is not clear why this is the case. Such assets are called intangible assets. Such assets are called intangible assets. Intangible assets include reputation, trademarks, and commercial rights.

4. Fictitious assets : Assets whose actual value cannot be measured in cash. Such assets are called nominal assets. Nominal assets include initial expenses, broker commissions, discounts and losses on the issue of shares and debentures, etc.

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