An asset is a valuable resource or item owned by an individual, company, or institution, capable of providing future economic benefits.
Assets can take various forms, such as cash, real estate, stocks, intellectual property, or equipment.
They are recorded on balance sheets and classified as either current (short-term) or non-current (long-term).
Assets play a crucial role in assessing an entity’s financial health, contributing to its overall net worth, and are essential for generating income or supporting operational activities.