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?

Anita is a Chartered Accountant, turned blogger and creator of the ever popular free Go Self Employed Email Mini Course, which has been completed by hundreds of attendees all over the UK. Using her 10 years experience in accounting, tax and operations for Small Businesses, Anita is on a mission to make finance simple for the self employed, so they can stop stressing about tax & finances and focus on building profitable businesses which will give them the lifestyle they dream of.