Difference between revisions of "Asset"

From Conservapedia
Jump to: navigation, search
(adding information and category)
m (→‎Financial Statements)
 
(11 intermediate revisions by 7 users not shown)
Line 1: Line 1:
−
In accounting, an '''asset''' is any resource owned by a business, having economic value or the expectation of future benefit. An asset can have ''tangible'' value, such as as cash, notes receivable, accounts receivable, property, stock, inventory, fixtures, business machinery, or ''intangible'' value such as property rights, patents, and goodwill.  
+
In [[accounting]], an '''asset''' is any resource owned by a business, having economic value or the expectation of future benefit.
  
−
Assets can be categorized in various ways: Monetary Assets are those that consist of cash or will be converted to cash. An example of a monetary asset is Accounts Receiveable. Nonmonetary assets are not normally converted to cash. Machinery and Equipment owned by a company are examples of nonmopntary or ''fixed'' assets.
+
An asset can have ''tangible'' value (such as cash, notes receivable, [[accounts receivable]], property, [[stock]], inventory, fixtures, and business machinery), or ''intangible'' value (such as property rights, patents, and [[goodwill]]).  
  
−
Assets may also be considered as Current or Non-current. Current assets are generally expected to be consumed within one year. Examples of current assets would be cash and inventory. Non-current assets are considered to have permanent, long-term benefits and life expectancy of more than one year. Examples of long term assets are equipment, buildings, and real estate.
+
==Financial Statements==
 +
On a company's [[financial statement]], assets are classified as "current" and "non-current".
  
−
When assets become impaired, their value must be adjusted. If a company holds an account receivable from another company that goes bankrupt, the receivable must be written down to the amount (which is very possibly zero) that will eventually be received. Fixed, or long term assets are usually subject to depreciation, accounting for normal wear and tear on the asset, which decreases it's value. Real estate is the only long-term asset that is normally not subject to depreciation, as it tends to increase, rather than decrease in value over time.
+
Current assets are defined as those which can or will be converted to cash within one year. In addition to cash, current assets will generally include [[accounts receivable]], short-term assets such as [[certificates of deposit]], the unused portion of prepaid expenses, inventory, and if a company has a long-term receivable (such as selling an old facility to a new owner), the portion of the receivable which it expects to collect during the year.
  
−
A businesses net assets (or ''net worth'') is the excess of assets over liabilities.
+
Non-current assets are all others which are not current.  Common examples are land and facilities, manufacturing equipment, and intangible assets.  Also, the portion of a long-term receivable owed after one year is classified as non-current.
  
−
[[Category:Accounting terms]]
+
When assets become impaired, their value must be adjusted.  The most common adjustments shown on financial statements are "contra-asset" accounts for uncollectible accounts receivable, and for [[depreciation]] and [[amortization]].
 +
 
 +
A business's net assets (or ''net worth'') is the excess of assets over liabilities.
 +
 
 +
{{Economic preparedness topics}}
 +
 
 +
[[Category:Economic Preparedness]]
 +
[[Category:Accounting Terms]]
 +
[[Category:Economics]]

Latest revision as of 16:19, July 26, 2022

In accounting, an asset is any resource owned by a business, having economic value or the expectation of future benefit.

An asset can have tangible value (such as cash, notes receivable, accounts receivable, property, stock, inventory, fixtures, and business machinery), or intangible value (such as property rights, patents, and goodwill).

Financial Statements

On a company's financial statement, assets are classified as "current" and "non-current".

Current assets are defined as those which can or will be converted to cash within one year. In addition to cash, current assets will generally include accounts receivable, short-term assets such as certificates of deposit, the unused portion of prepaid expenses, inventory, and if a company has a long-term receivable (such as selling an old facility to a new owner), the portion of the receivable which it expects to collect during the year.

Non-current assets are all others which are not current. Common examples are land and facilities, manufacturing equipment, and intangible assets. Also, the portion of a long-term receivable owed after one year is classified as non-current.

When assets become impaired, their value must be adjusted. The most common adjustments shown on financial statements are "contra-asset" accounts for uncollectible accounts receivable, and for depreciation and amortization.

A business's net assets (or net worth) is the excess of assets over liabilities.


v • d • e
Economic Preparedness
Economic preparednessGold1.jpg
Economic collapse
Economic history
Categories
Retrieved from "https://conservapedia.com/index.php?title=Asset&oldid=1875709"