Asset
Asset is anything of value owned by the company, which can be current, fixed, tangible, or intangible.
Benefits
The benefit of an asset is that it can help a business or investor grow their wealth over time.
Frequently Asked Questions
Are fixed assets tangible or intangible?
Fixed assets are tangible, like buildings and machinery, while intangible assets include things like patents and trademarks.
Is borrowing money an asset?
No, borrowing money is not an asset; it`s a liability.
What is an example of a borrowing base?
A borrowing base is the total value of assets your lender agrees to accept as collateral for a loan. For example, if you have $20,000 in the bank and $30,000 worth of inventory, your borrowing base could be $50,000, allowing you to borrow up to that amount.
Key Takeaway
In conclusion, assets, whether tangible like buildings or intangible like patents, are valuable possessions for a company, essential for its growth and wealth accumulation over time.