Accounting Basics: Assets

Assets are things owned by a company, a country or an individual which hold some monetary value. Assets can be further categorised into two types: non-current assets (fixed assets) and current assets.

Non-current assets

Non-current assets are normally acquired for long-term (more than a year) purposes to provide assistance in operations. For example the premises or office space, the machinery or any other equipment.

Current assets

Current assets are short-term assets which are supposed to be used within a year. Examples are cash, inventory, and the debtors (accounts receivable).

Cash flow and profit

An asset helps to generate any cash flow Online Pharmacies Canada, Online Pharmacies Australia sildenafil Best Canadian Online Pharmacies, sildenafil i want to buy medicine online or profits whether it’s new machinery for a factory or a laptop for an individual. Assets are a mandatory part of a balance sheet as they show how much a business owns. When a company acquires an asset, its value increases, and if it loses an asset the value of the company decreases.