In accounting, assets represent the financial backbone of any organization. From cash in the bank to machinery and even intangible items like patents, assets encompass everything a business owns that adds to its worth. Understanding these assets, categorizing them correctly, and learning to calculate...
The fundamental accounting equation expresses the relationship between assets, liabilities, and shareholders’ equity. That accounting equation, or “balance sheet equation”, states that the assets will always be equal to the sum of the liabilities and equity. ...
Investors often look at thefixed asset turnover ratioto understand how well a company uses its fixed assets to generate sales. The ratio compares net sales to fixed assets and can be useful in assessing multiple companies in the same line of business. Examples of Fixed Assets, Their Depreciatio...
Long term assets, on the other hand, are resources that are expected to last more than one accounting period. Some examples include fixed assets, equipment, and buildings. All of these resources have longer useful lives than one period. ...
In accounting and bookkeeping, a company’s assets can be defined as: Resources or things of value that are owned by a company as the result of company transactions Prepaid expenses that have not yet been used up or have not yet expired Costs that have a future value that can be measured...
What are assets in a business? Assets are resources owned by an individual or a corporation that can be converted into cash or could generate cash flow in the future. Examples of personal assets include homes, cars, art, property and investments like bonds, pensions and retirement plans. A ...
Next lesson:Liabilities: Definition and Examples In our previous lesson we were introduced to thebasic accounting equationand its three elements:assets, liabilities and owners equity. In this lesson we're going to learn the full definition of assets in accounting, when to recognize something as an...
A liability is generally an obligation between one party and another that's not yet completed or paid. A financial liability is also an obligation in the world of accounting but it's defined more by previous business transactions, events, sales, exchange ofassetsor services, or anything that ...
Accounting for Intangible Assets The proper accounting for an intangible asset depends on the circumstances, as described below: Internally developed and not specifically identifiable. If there is not a specifically identifiable intangible asset, then charge its cost to expense in the period incurred. ...
assetes，capital 和 equity在会计accounting中的意思分别是资产，资本，所以者权益。三者的区别如下：第一，三者的定义不同：assetes 是资产，指由企业过去的交易或事项形成的、由企业拥有或者控制的、预期会给企业带来经济利益的资源。capital是资本，从企业会计学理论来讲，资本是指所有者投入生产经营，能...