You might have used the term ‘Asset’ many times in you life. The real meaning of assets in accounting concepts is “Assets are what the business owns”.Assets are the things of value owned by a business or economic resources of a business. Assets are business property and possessions such as cash, book debts or debtors, stock, land and building, furniture etc.

Assets are classified according to its nature as follows.

  1. Current Asset:- Assets that are in the form of cash or that can be converted into cash within a short period of time ( usually, twelve months) are known as current asset.
  2. Fixed Asset:- Fixed assets are assets assets of a relatively permanent nature which are used in the operation and are not intended to for a sale.
  3. Intangible Assets:- Certain assets have no material existence, they cannot be touched or seen.Such assets exist simple by means of book entry. example. Goodwill, patent,copyright.
  4. Fictitious asset:- These are not real asset but simply debit balances or losses carried forward from one accounting period to the next. For example advertising suspense account.
  5. Wasting assets:-Generally speaking all assets that lose value through wear and tear or constant use,as for example, Plant and machinery are wasting assets. But the term is more appropriately used to refer only those assets which become exhausted through being worked,such as, mines,quarries etc.

Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!

Related pages

impersonal ledgertally cheque printingbank cash book formatcredit and debit notestax slab for financial year 2014 15mortgage debenture definitionjournal entries for accrued expensescheque vouchertally bottlemanufacturing in tallyrules for debit and credit in accountingaccounting rules for journal entriesrtgs icici chargesneed and importance of bank reconciliation statementledger subledgertypes of indirect expensesjournal entry for bank reconciliationistcsproforma invoice and invoicehow to create invoice numberscredit sales journal entryadvance payment journal entrytally academy in hyderabadjournal entry for depreciationdouble entry journal definitionsample stock ledgersundry creditors accountform 26q tdstds 94ctally backuptax slab assessment year 2014 15tds calculation on service invoicesrent paid in advance journal entryshort cut key of excelaccrued expense journal entry exampletally questions and answerstally examples for practicedifference between sundry creditors and sundry debtorspost dated cheque meaningterminologies in accountingwhy do you prepare a trial balancebank reconciliation template xlswhat is meant by fictitious assetstally training institutestax tcscheque withdrawalmemorandum format worday 2014 15 slab ratesopposite of debtorwhat are ledgers in accountingadjustment entries in accounting examplecredit card expense journal entrypost dated cheque definitionwhy is it important to prepare a bank reconciliation statementjournal voucher formattds on food billpetty cash journal entrytally 9.0 software download pcfree download tally erp 9 softwareinventory in tallymeaning of sundrytally invoicedefinition of debentures in accountingdefine bank reconciliation statementbank reconciliation statement formatbalance confirmation letter format debtorsremove vat formulaimpersonal ledgeradjusting journal entries accounting examplessundry debtorincome tax slab for assessment year 2014-15define contra accountdebit voucher in accountingadjusting journal entry exampleproforma invoice exampledebit sweep in sbi accountsales ledger account format