Asset

• Resource with economic value

Classifications

• Current
  • Short term
  • Expected to be turned into cash or consumed within a year
  • E.g
    • Cash or equivalents
    • Accounts receivable
    • Inventory
    • Prepaid expenses
• Fixed
  • Lifetime greater than a yaar
  • E.g
    • Plants
    • Equipment
    • Buildings
  • Depreciation
    • Cost of asset over time
    • May reflect loss of earning power
• Financial
  • Investments in assets and securities
  • E.g
    • Stocks
    • Sovereign & corporate bonds
    • Preferred equity
    • Hybrid securities
• Intangible
  • No physical presence
  • E.g
    • Patents
    • Copyrights
    • Goodwill

Uses

• Generate cash flow
• Reduce expenses
• Improve sales