An asset is a valuable resource or item owned by an individual, company, or entity, with the potential to generate economic value. Assets can be tangible, such as real estate, machinery, or inventory, or intangible, like patents, trademarks, or intellectual property.
Assets play a crucial role in financial accounting and are listed on a balance sheet, reflecting the entity’s wealth. Understanding and managing assets are essential for financial planning, investment decisions, and assessing an entity’s overall financial health and stability.
