Assets
Also called: asset
Everything a business owns or controls that has value, such as cash, receivables, stock, machinery and buildings.
Assets appear on the balance sheet, split into current assets (expected to turn into cash within about a year, such as receivables and stock) and non-current assets (longer-term, such as land and machinery).
Every asset is financed either by liabilities or by equity, which is why assets = liabilities + equity.
Learn more in these lessons
- Assets, liabilities and equityWhat are assets, liabilities and equity?
- The balance sheetHow do you read a company's balance sheet?
- Return on assetsWhat does return on assets tell you, and when is it the right measure?
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