what is assets in accounting

In accounting, an asset is any resource that a business owns or controls that is expected to provide future economic value. Assets are reported on a companys balance sheet and are classified as current, fixed, financial, or intangible. Assets can be physical items, such as machinery, or intangible, such as intellectual property. There are six different categories of assets in accounting: current assets, fixed assets, tangible assets, intangible assets, operating assets, and non-operating assets. Examples of assets include real estate, cash, office equipment, goodwill, investments, patents, and inventory. It is important to classify assets properly to avoid problems.