Assets

Definition of Assets as it relates to Business, Financial Management, Securities Trading, Accounting Principles, Balance Sheet

Assets, as a component of the Balance Sheet within Accounting Principles, specifically refers to resources owned by a business in Securities Trading and managed under Financial Management principles within a Business. These resources can be tangible or intangible, such as property, equipment, inventory, patents, trademarks, or investments, and have the potential to generate economic benefits for the company in the future. Assets are listed on the balance sheet based on their level of liquidity, starting with the most liquid assets, such as cash and cash equivalents, followed by less liquid assets like accounts receivable, inventory, property, plant, and equipment, and finally intangible assets. The total amount of assets is used to calculate a company's financial leverage and overall financial health.

Note
Related Categories ⇒