Business Word for the Day - Assets

Assets Declaration Assets

Wed, 19 Jan 2022 Source: www.ghanaweb.com

Alice Walton once said, "one of the great responsibilities that I have, is to manage my assets wisely so that they create value".

Assets are resources that an individual or company owns in expectance of added value in a period. Assets are acquired to help a business grow and replenish.

According to Investopedia, an asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit.

An asset can be thought of as something that, in the future, can generate cash flow, reduce expenses, or improve sales, regardless of whether it's manufacturing equipment or a patent.

There are three types of assets according to Investopedia.com and they are as follows;

Fixed Assets

These are long-term resources, such as plants, equipment, and buildings. An adjustment for the aging of fixed assets is made based on periodic charges called depreciation.

Financial Assets

Financial assets represent investments in the assets and securities of other institutions. They are made up of stocks, sovereign and corporate bonds, preferred equity, and other hybrid securities.

Intangible Assets

Intangible assets are economic resources that have no physical presence. Patents, trademarks, copyrights, and goodwill are part of intangible assets.

Good management of one's assets according to economic principles is a step to prosperity.

Source: www.ghanaweb.com
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