In financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything that can be used to produce positive economic value. Assets represent value of ownership that can be converted into cash.
Key Takeaways. An asset is something containing economic value and/or future benefit. An asset can often generate cash flows in the future, such as a piece of machinery, a financial security, or a patent. Personal assets may include a house, car, investments, artwork, or home goods.
a useful and desirable thing or quality: Organizational ability is an asset. ... assets, items of ownership convertible into cash; total resources of a person or business, as cash, notes and accounts receivable, securities, inventories, goodwill, fixtures, machinery, or real estate (opposed to liabilities). Accounting.
A house, like any other object that comes into your possession, is classified as an asset. An asset is something you own. A house has a value. ... You can offset the value of the asset with the value of the mortgage, your liability.
A human being or a person cannot be considered an asset like tangible fixed assets such as equipment, because people cannot be owned, controlled or measured for future economic benefits in money terms, unlike physical assets.
“People are your greatest asset.” ... Research shows that companies that view employees as valuable assets, and not cost centers, outperform companies that don't. When you know what to look for, there are clear signals that prove that a company is serious about investing in its people.