Accounting glossary

What is asset?

Anything your business owns that has value: cash, inventory, receivables, equipment, vehicles. Assets sit on the left side of the balance sheet and are classified as current (turning to cash within a year) or fixed (held long-term to run the business).

Example

A store holds $95,000 of stock, $14,000 in the bank, $22,000 owed by account customers and a $30,000 van. Those are all assets, totalling $161,000.

The stock, cash and receivables are current assets (expected to become cash within a year); the van is a fixed asset held to run the business.

In SeroBooks

The Balance Sheet reads assets live from the ledger; the fixed-assets register tracks the long-term ones. Financial statements →

Nearby terms

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