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Asset

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An asset can include anything that provides economic value to a company. An asset might be obvious - such as cash, stocks and bonds (securities), accounts receivable or real estate. An asset could be something harder to measure - such as inventory, pre-paid expenses or office equipment. An asset might also be the good name and reputation of a company. Patents and copyrights could also be considered an asset due to their potential earning power. An asset such as the daily business activities of a company and work in progress might contribute to positive monetary value as well. The term asset covers a broad range of both tangible and intangible items. In short, anything that is owned by a company, whether visible or not, which has the possibility to provide financial gain is called an asset.



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