What is meant by Assets? Also explain its types.

Assets – Assets are the economic resources of a business that can be usefully expressed in monetary terms. Assets give cash or benefits in future.

Types:

• Fixed Assets – Fixed assets are those assets which are purchased for operating the business, not for resale. E.g. – land, building, machinery, patents etc.
• Current Assets – Current assets are those assets which are held in the business for short period for converting them into cash. E.g. – Debtors, bills receivables, unsold goods etc.
• Tangible Assets – They are the assets which have physical existence. They can be seen and touched. E.g. – land, building, computer etc.
• Intangible Assets – They are the assets which do not have any physical form i.e. they can't be seen and touched. E.g. – Goodwill, trademark, patents etc.
• Wasting Assets – Wasting assets are those natural resources which are consumed during the process of use, such as minerals and oil wells. As soon as the minerals have been extracted, the resource becomes valueless.