Assets
Assets are the resources a business owns which the business uses in carrying out such activities as production and sales. 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, campus pizza owns a delivery truck that provides economic benefits from delivering pizzas. Other assets of campus pizza are tables, chairs, jukebox, cash register, oven, tableware, and of course, cash.
Assets = Liabilities +Owner's Equity
Webster Dictionary Meaning
1. Assets
- Property of a deceased person, subject by law to the
payment of his debts and legacies; -- called assets because sufficient
to render the executor or administrator liable to the creditors and
legatees, so far as such goods or estate may extend.- Effects of an insolvent debtor or bankrupt, applicable to the payment of debts.
- The entire property of all sorts, belonging to a person, a corporation, or an estate; as, the assets of a merchant or a trading association; -- opposed to liabilities.
Category: Accounting & Auditing
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