Assets
<p >In <a href="https://en.wikipedia.org/wiki/Financial_accountancy" class="mw-redirect" title="Financial accountancy" >financial accounting</a>, an <b>asset</b> is an economic resource. Anything tangible or intangible that can be owned or controlled to produce value and that is held to have positive <a href="https://en.wikipedia.org/wiki/Economic_value" class="mw-redirect" title="Economic value" >economic value</a> is considered an asset. Simply stated, assets represent value of <a href="https://en.wikipedia.org/wiki/Ownership" title="Ownership" >ownership</a> that can be converted into <a href="https://en.wikipedia.org/wiki/Cash" title="Cash" >cash</a> (although cash itself is also considered an asset).<sup id="cite_ref-O.27Sullivan_2003_272_1-0" class="reference" ><a href="https://en.wikipedia.org/wiki/Asset#cite_note-O.27Sullivan_2003_272-1" >[1]</a></sup>
The <a href="https://en.wikipedia.org/wiki/Balance_sheet" title="Balance sheet" >balance sheet</a> of a firm records the monetary<sup id="cite_ref-CPA_2-0" class="reference" ><a href="https://en.wikipedia.org/wiki/Asset#cite_note-CPA-2" >[2]</a></sup> value of the assets owned by the firm. It is money and other valuables belonging to an individual or business.<sup id="cite_ref-O.27Sullivan_2003_272_1-1" class="reference" ><a href="https://en.wikipedia.org/wiki/Asset#cite_note-O.27Sullivan_2003_272-1" >[1]</a></sup> Two major asset classes are <a href="https://en.wikipedia.org/wiki/Tangible_property" title="Tangible property" >tangible assets</a> and <a href="https://en.wikipedia.org/wiki/Intangible_assets" class="mw-redirect" title="Intangible assets" >intangible assets</a>. Tangible assets contain various subclasses, including current assets and fixed assets.<sup id="cite_ref-FinanceDict_3-0" class="reference" ><a href="https://en.wikipedia.org/wiki/Asset#cite_note-FinanceDict-3" >[3]</a></sup> Current assets include <a href="https://en.wikipedia.org/wiki/Inventory" title="Inventory" >inventory</a>, while fixed assets include such items as <a href="https://en.wikipedia.org/wiki/Buildings" class="mw-redirect" title="Buildings" >buildings</a> and <a href="https://en.wikipedia.org/wiki/Capital_equipment" class="mw-redirect" title="Capital equipment" >equipment</a>.<sup id="cite_ref-CPA_Finance_4-0" class="reference" ><a href="https://en.wikipedia.org/wiki/Asset#cite_note-CPA_Finance-4" >[4]</a></sup>
Intangible assets are nonphysical resources and rights that have a value to the firm because they give the firm some kind of advantage in the market place. Examples of intangible assets are <a href="https://en.wikipedia.org/wiki/Goodwill(accounting)" title="Goodwill (accounting)" >goodwill</a>, <a href="https://en.wikipedia.org/wiki/Copyrights" class="mw-redirect" title="Copyrights" >copyrights</a>, <a href="https://en.wikipedia.org/wiki/Trademarks" class="mw-redirect" title="Trademarks" >trademarks</a>, <a href="https://en.wikipedia.org/wiki/Patents" class="mw-redirect" title="Patents" >patents</a> and <a href="https://en.wikipedia.org/wiki/Computer_program" title="Computer program" >computer programs</a>,<sup id="cite_ref-CPA_Finance_4-1" class="reference" ><a href="https://en.wikipedia.org/wiki/Asset#cite_note-CPA_Finance-4" >[4]</a></sup> and financial assets, including such items as <a href="https://en.wikipedia.org/wiki/Accounts_receivable" title="Accounts receivable" >accounts receivable</a>, <a href="https://en.wikipedia.org/wiki/Bond(finance)" title="Bond (finance)" >bonds</a> and <a href="https://en.wikipedia.org/wiki/Stock" title="Stock" >stocks</a>.</p>