Bizblog term of the day: ASSET

   
 
   I termed ASSET as anything that brings economic value to an individual or an entity.Now lets get to the definition;

   Asset is a resource whose economic value flows directly to an individual or organisation.An asset should be able to generate cash inflows to an individual or company. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset.

   In Accounting world,as stated in the statement of financial position;

        An asset is anything(i.e tangible or intangible)owned by a firm that generate inflows (directly or indirectly).

     Asset is classified into current(items that can be easily converted to cash within 12 months e.g cash&cash equivalents,trade and other receivables,inventories) and non-current asset(e.g Property,plant & equipment,Investments,Intangible assets such as goodwill,patents,trademarks,royalties).

   On a final note,please try make your assets outnumber your liabilities cos that's one of your money-worth indicator.


Gracias~~~~~