What is Asset?

Asset is company’s resource or any item of economic value owned by company that is used for production process in company. In accounting, assets are often grouped into 3 types : current asset, fixed asset and intangible asset.

Current asset is tangible asset owned by company and used for production process in company within one year or one accounting period. Current asset include cash, account receivable, inventories, accrued receivable, prepaid expense and note receivable.

Fixed asset is tangible asset owned by company and used for production process in company more than one year or one accounting period. The examples of Fixed asset are : building, land, machine, transportation, and equipment.

Intangible asset is company’s wealth or valuable resources that have no physical existence but it can give advantages for company. The examples of intangible asset such as trademark, goodwill, copyright, patents, etc.