Material or monetary resources owned by an individual or corporation. Most assets can be converted into cash at some point and become liquid when traded in the marketplace.


Assets can be divided into the following categories:

  • current assets: cash, short term investments, inventory and other items expected to be converted to cash, sold or consumed
  • Long-term assets: investments held for many years, like real estate, bonds, securities and pensions
  • Fixed assets: purchased for continued and long-term use in earning a profit, like land, buildings, machinery, furniture, tools and insurance
  • Intangible assets: items lacking physical substance, such as trademarks, patents and copyrights

Often used as collateral when borrowing money: Assets = Liabilities + Owners’ Equity.

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