Home > Accounting Glossary > Asset
Asset: Definition and Meaning
Definition
An asset is a resource owned or controlled by a business that is expected to provide future economic benefit. Examples may include cash, accounts receivable, inventory, equipment, and certain intangible rights.
Why It Matters
Assets are reported on the balance sheet and help users understand the resources available to a business. The quality, liquidity, and usefulness of assets matter as much as their total amount. Cash and collectible receivables are generally more liquid than specialized equipment or aged inventory.
Business owners may review assets when evaluating liquidity, borrowing needs, investment decisions, and long-term financial health.
Example
Cash in the bank, a customer invoice due next month, and a company vehicle used in operations are all examples of assets.
Related Terms
TYS provides accounting, tax, construction-accounting, and business-advisory support to closely held businesses, contractors, individuals, and families. With offices in Fairport, New York, and Walnut Creek, California, TYS helps clients better understand their financial information and prepare for important decisions.
Have a question about Asset or your business’s financial reporting?
Contact TYSThe information on this page is provided for general educational purposes only and is not accounting, tax, legal, financial, insurance, bonding, or business advice. Consult qualified professionals regarding your particular circumstances.
Back to the Accounting Glossary →