An asset is a resource that is owned by a company and is expected to provide future economic benefits. Assets are typically classified into two categories: tangible assets and intangible assets.

Tangible assets are physical assets that have a monetary value and can be bought and sold. Examples of tangible assets include land, buildings, machinery, and equipment.

Intangible assets are non-physical assets that have a monetary value, but cannot be bought or sold. Examples of intangible assets include trademarks, patents, copyrights, and brand value.

On a company’s balance sheet, assets are typically listed in order of liquidity, with the most liquid assets listed first. This means that assets that can be easily converted into cash, such as cash and cash equivalents, are listed first, followed by less liquid assets, such as accounts receivable and inventory.

Overall, assets are an important part of a company’s financial position, as they represent the resources that the company has available to generate future economic benefits.

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