Assets
Bookkeeping Ingredients > Chart Accounts-Accounts
Definition: Resources owned by the business that have future economic value.
Financial Statement: Balance Sheet
Examples: Cash, Accounts Receivable, Inventory, Land, Buildings, Equipment
Categories:
Current Assets
Assets expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.
Examples: Cash, Accounts Receivable, Inventory, Prepaid Expenses
Non-Current Assets (Property, Plant, and Equipment)
Long-term assets used in the operation of a business that are not intended for sale, such as land, buildings, and machinery.
Examples: Land, Buildings, Equipment, Vehicles, Furniture
Intangible Assets
Assets that lack physical substance but have value based on legal rights or competitive advantages.
Examples: Patents, Copyrights, Trademarks, Goodwill
Debit: Increases Balance
Credit: Decreases Balance
Normal Balance: Debit
Making Sense Of Assets
Dave Explains Business Assets
Dave Explains Inventory
Dave Explains Fixed Assets
Inventory Simplified