Meaning of Asset
Asset means a financial or an economic resource.
Asset includes all those things (either tangible or intangible ones) which are capable of being owned or leased out (rented) to generate a value (price) or returns in present and in the future.
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Definition of Asset
In general, the definition of an asset can be stated as follows,
“An asset is a financial or economic resource controlled either by an individual or organization, as a result of their past and present actions, from which future paybacks are expected to occur.”
Examples of Assets
The importance of an asset depends on its use by an individual or organization. Some common examples of assets based on their significance from an individual's and organization's perspective are depicted below.
Generally, examples of assets owned by an individual includes:
- Residential flat,
- Commercial shop (given on rent),
- Agricultural land,
- Farm house,
- Jewellery made from platinum, gold, silver, diamonds, pearls, etc.
Examples of assets that belong to an organization are:
- Factory land,
- Factory and office building,
- Plants and machineries,
- Office furniture and fixtures,
- Office equipments,
- Data servers,
- Office vehicles, etc.
Thus, anything tangible or intangible which has a value or a capacity to generate revenue with or without the help of materials, labour (skilled, semi-skilled or unskilled) or infrastructure shall be considered as an asset.