What is an Asset in Accounting?

What is an Asset?

In accounting an asset is something of value to a business.  Depending on the type of asset they may bring value, help the business generate its income or represent money owed. Assets are shown on the balance sheet.

Examples of Assets

Examples of assets include:

  • Equipment;
  • Computers;
  • Property;
  • Investments;
  • Vans;
  • Company websites;
  • Trade debtors;
  • Tax repayments;
  • Cash.

How are Assets Classified?

In accounting, assets are classified depending on their type.  Here are the most common types of assets and examples of each:

  • Tangible Fixed Assets  (for example computers, equipment);
  • Intangible Fixed Assets (for example goodwill);
  • Current Assets (for example trade debtors and stock);
  • Cash in bank accounts.

What is a Liability in Accounting?

About Anita Forrest

Anita Forrest is a Chartered Accountant, spreadsheet geek, money nerd and creator of www.goselfemployed.co - the UK small business finance blog for the self-employed community. Here she shares simple, straight-forward guides to make self-employment topics like taxes, bookkeeping and banking easy to understand.