Question

What is an asset?

Answer 1

Assets =

An asset is a resource for the company owned and controlled by them. Assets owned by the company to generate/ produce revenue for the company.

1. Personal Assets -

Owned and control by the individual.

2. Business Assets -

Owned and controlled by the business. Purchased from the amount invested through shareholders or in case of proprietary company-owned and control by the owner's capital.

a. Current Assets -

Current Assets are those assets that can be converted into cash and equivalent within a time of 1 year.

Examples -

1. Cash and Cash Equivalents

2. Accounts Receivable

3. Inventory

b. Fixed Assets -

Fixed Assets are those assets that can not be converted into cash and equivalent within a time of 1 year.

Examples -

1.Machinery

2. Buildings

3. Land

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