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Friday, April 1, 2016

Define Asset

Anything or economic value which is owned by a company or a person for business purpose especially those items which can easily be converted into cash or easy to liquidate such as "account receivables, securities, inventories or office equipment are defined Assets.

Assets are divided into the following categories according to the accounting point of view,
Current assets: (Cash, bills, securities, and other liquidate-able things).
Long-term assets: (Plant and machinery, buildings vehicles).
Prepaid and deferred assets (expenditure incurred for future costs such as insurance, rights to use an area, rent, and interest).

Intangible assets (trademarks, patents, copyrights, and goodwill).

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