In accounting terms, an asset is an economic resource controlled by a company which is expected to produce benefits to the company in future. Assets are categorized as either current assets or long-term assets. Current assets are assets whose value can be realized in a short space of time and readily converted into cash (if they are not cash already). Examples of short-term assets include debts which are due to be paid by others, inventories of goods which the company has produced for sale or bought for use as inputs in its own business processes, cash or readily saleable financial securities. Long-term assets are assets which are fairly illiquid. Examples would include things such as property or factory or office equipment. Land which is owned by a company, or rights to exploit any mineral wealth within a particular area, would also be considered long-term assets.
Some assets are intangible in nature. These would include things such as intellectual property rights, good reputation and goodwill. It can be difficult to quantify the value of intangible assets. There is also a certain amount of variation between countries in how intangible assets are treated in the preparation of a company’s set of accounts.