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Assets are everything you own that has any monetary value, plus any money you are owed.
They include money in bank accounts, stocks, bonds, mutual funds, equity in real estate, the value of your life insurance policy, and any personal property that people would pay to own.
When you figure your net worth, you subtract the amount you owe, or your liabilities, from your assets. Similarly, a company's assets include the value of its physical plant, its inventory, and less tangible elements, such as its reputation.
assetan item or property which is owned by a business or individual and which has a money value. Assets are of three main types:
- physical assets such as plant and equipment, land, consumer durables (cars, etc.);
- financial assets such as currency, bank deposits, stocks and shares;
- intangible assets, such as BRANDS. Alternatively, assets can be classified into FIXED ASSETS (those intended for long-term use by a business); and CURRENT ASSETS (those intended to be turned over, in trading, as raw materials are converted into finished goods, then sold to generate cash). See INVESTMENT, LIQUIDITY, BALANCE SHEET, LIABILITY.
assetan item or property owned by an individual or a business that has a money value. Assets are of three main types:
- physical assets, such as plant and equipment, land, consumer durables (cars, washing machines, etc);
- financial assets, such as currency, bank deposits, stocks and shares;
- intangible assets, such as BRAND NAMES, KNOW-HOW and GOODWILL. See INVESTMENT, LIQUIDITY, BALANCE SHEET, LIABILITY.
Something of value. On a balance sheet or personal financial statement, assets will include the following items, typically arranged in order according to the ease with which they can be converted into cash:
Cash and equivalents
Cash on hand:
Cash in banks
Less reserves for bad debts
Furniture, fixtures, and equipment
Stock in closely held corporations
Intellectual property rights
When lenders examine balance sheets,they generally assume that individuals and small businesses overvalue the furniture, fixtures, and equipment and the general intangibles. Large entries for cash and equivalent assets will overcome a poor credit rating 9 times out of 10.