what are assets

An asset is anything of value or a resource of value that can be converted into cash. In financial accounting, an asset is any resource owned or controlled by a business or an economic entity that can be used to produce positive economic value. Assets are reported on a companys balance sheet and are classified as current, fixed, financial, and intangible. Assets can be grouped into two major classes: tangible assets and intangible assets. Tangible assets contain various subclasses, including current assets and fixed assets. Current assets include cash, inventory, accounts receivable, while fixed assets include land, buildings, and equipment. Intangible assets are non-physical resources and rights that have a value to the firm because they give the firm an advantage in the marketplace. Examples of assets include cash, investments, inventory, office equipment, machinery, and real estate.