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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:
- Company websites;
- Trade debtors;
- Tax repayments;
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.
Anita is a Chartered Accountant with over a decade of experience taking self employed business owners from financially confused to business savvy.
She is the creator of the ‘Go Self Employed’ website, which her corner on the internet where she makes self employment less terrifying.