Asset

Definition: An asset is a resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entit…

An asset is a resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entity. Assets are classified as current (expected to be converted to cash or consumed within one year) or non-current (long-term). The five major categories include cash and cash equivalents, accounts receivable, inventory, property plant and equipment, and intangible assets. Assets always appear on the left side of the accounting equation: Assets = Liabilities + Equity. In double-entry bookkeeping, assets are increased by debits and decreased by credits.