📣 Definition of Assets

📣 Definition of Assets

“Assets” a word that many people wonder what is it and what is it? Today we will solve doubts about assets.

📌 What are assets?

Assets are things that the owner (person or business) possessing or benefiting from ownership Claim Value Earned Expenses next accounting period which is something of value may be tangible or intangible.

In accounting, assets mean What the owner owns to run the business which is something of value that may or may not be tangible, such as cash, various types of bills, land, office buildings, patents, advance expenses, etc.

📌 What are the assets?

Assets can be categorized into 3 types: current assets. fixed assets and other assets

1. Current assets are assets that the owner sells or exchanges for cash or things that will be exhausted within one year, such as cash, dated checks, bills of receipt, receivables, etc., or advance expenses. Deferred supplies such as office supplies, paper, etc.

2. Fixed assets are assets that are durable and have a useful life of more than 1 year, which can be subdivided as follows:

Tangible fixed assets such as office buildings, machinery, land, etc.

Intangible fixed assets include:

- computer program

- Trademark is the right to use various benefits from the mark.

- Patent is the right to take advantage of things that are inventions.

- Copyright is the right to use music, literature, etc.

- Concession is the right to bring goods and services to the market.

- Value is the value resulting from the acquisition of a business at a higher price than it is now.

- Lease is the right to take advantage of the leased item.

- Company establishment expenses

- Deferred expenses are expenses that have been paid and utilized. But the timing of the benefit also affects many of the account periods.