Short definition: An asset is a resource owned or controlled by a company, individual, or other entity with the expectation that it will provide future economic benefits.
Explanation: Assets are listed on a company’s balance sheet and can be tangible (physical) or intangible (non-physical). Tangible assets include items such as property, plant, equipment, and inventory. Intangible assets include patents, trademarks, copyrights, and goodwill.
Example: A company’s assets might include cash, accounts receivable (money owed to the company by customers), inventory (goods held for sale), buildings, machinery, and vehicles.
Additional information (optional): Assets are classified as current or non-current. Current assets are expected to be converted to cash or used up within one year, while non-current assets have a longer useful life.