Assets

Assets are things that our company owns and that we use to generate income. Assets are often called assets.

Don't let the asset name mislead anyone, we're not just talking about tools. In accounting terms, the asset can mean practically anything: 

• object, 
• equipment, 
• means of production, 
• inventory, 
• invested financial asset, 
• securities, 
• receivable, 
• money 
• concessions, licences and similar rights. 

The point is that our company uses these assets during its business-like operation and for that purpose.

Assets are also called assets. These are valuable assets owned by the company, which the company uses to generate income. 

They are among assets 

• fixed assets, 
• current assets, 
• the accrued income and deferred expenses. 

As you can see, assets include not only tangible assets, but also rights, abstract values, patents, and know-how.

In the case of assets, it is an essential condition that their value can be quantified in all cases. This is also true when it comes to objects (such as the company's production line). But it is also true when we think of property rights (such as mining rights or leasehold rights). In a company in the balance sheet, these assets are listed on the asset side of the balance sheet. (The liabilities are on the other side of the balance sheet. The liabilities show how the assets were used to finance. Sources are also called liabilities.) 

Assets can be grouped according to several aspects. In one of the most common divisions, assets are distinguished based on their temporality. Short -term assets serve the company within one year. These are, for example, receivables and inventories. Longer-term assets can be the assets of the company for years, or even decades. This group includes, for example, invested financial assets, tangible assets, concessions, licences and similar rights. 

However, it is important that some of the assets lose their value over time due to amortisation or market processes. For example, an expensive piece of equipment ten years ago is probably only worth a fraction of its original price today. 

All of this is also important because the value of the assets can usually constitute a significant part of the company's assets. This is true even if the business is profitable and even if it is unprofitable. This can be of particular importance if we are forced to sell these assets for some reason. Such a decision can help the company to get back on its feet. It can also be a solution if you no longer want to continue working. In the latter case, the sale of the assets can be a solution in a reassuring for the termination of operations.