What is an Asset?

Definition: An asset is any resource that can be 'Owned' or 'controlled' by a business entity to generate economic benefits(Profits).

Explanation: 

As defined above, any resource which owned or controlled by a business which generate profits is called an asset. In accounting assets are classified in to two major categories: Tangible assets & Intangible assets. 

Tangible assets are divided in to two kinds: 

Current assets, & Non-Current assets.

Current assets include:

• Cash
• Bank balance
• Inventory
• Prepaid expenses
• Debtors/ Account receivable.
• Advance payments, etc. 

Non-Current/ Fixed assets Include:

• Land
• Building
• Plant
• Machinery
• Equipment
• Long-term investments
• Right of use, etc.