Assets

Assets are resources that have economic value and can be owned or controlled with the expectation that they will provide future benefits. They can be tangible, like real estate, vehicles, and equipment, or intangible, such as patents, trademarks, and goodwill. In a personal finance context, common assets include cash, savings accounts, stocks, and bonds. For businesses, assets also encompass inventory and accounts receivable. The classification of assets is often divided into current and non-current categories: current assets are those expected to be converted into cash within a year, while non-current assets are long-term investments that are not easily liquidated. Understanding assets is crucial for evaluating financial health and making informed investment decisions, as they play a significant role in determining an individual’s or organization’s net worth.