General Definition
Any valuable thing or person useful to someone is deemed an asset.
An asset is something that belongs to a company or person and has value. A company’s balance sheet will show assets in various forms such as current assets, fixed assets and intangible assets. An individual’s assets will include items such as his or her house, car, and clothes.
Definition in Contemporary Business
An asset is anything of value owned by a firm. A valuable resource owned or controlled by an economic entity that comes in handy for their profit generation would be an asset.
Assets are the resources a business owns which the business uses in carrying out such activities as production and sales. These kinds of assets are readily suitable for a great exchange value while paying off debts, counting legacies, or taking a loan.
An asset is a financial claim or piece of property that is a store of value. The common characteristic possessed by all assets is the capacity to provide future services or benefits. In a business, that service potential or future economic benefit eventually results in cash inflows (receipts).
For example, the US pizza chain, Campus Pizza owns a delivery truck that provides economic benefits from delivering pizzas so that is an asset to them. Other assets of Campus Pizza are tables, chairs, jukebox, cash register, oven, tableware, and of course, cash.
Assets = Liabilities + Owner's Equity
Use the Term in Sentences:
- The asset value surpassing the capital investment is the owner’s confirmation of success.