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What is an Asset?

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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.

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