Definition

An asset is a company's resource that carries economic value and can fetch a future benefit too. These are bought or created to boost a company's value or benefit its operations. Assets are reported on a company's balance sheet and can be classified as current, fixed, financial, or intangible.

Example

Examples of assets:a. Current assets such as cash, inventory, prepaid expensesb. Fixed assets such as equipment, buildingsc. Financial assets such as stocks, bonds,d. Intangible assets such as copyrights, patents

Why it matters

Assets are important for any company as they can help in:generating revenuea. increasing business valueb. help in running the businessThese can also be sold or transferred to derive value.

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