Assets

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  Assets is an accounting term that is used for items and resources that a company already owns.  The term is used on a balance sheet to classify these items.  Assets on hand are not the same as liabilities.  The APICS Dictionary defines the term Assets as:

• An Accounting/Financial term (balance sheet classification of accounts) representing resources owned by a company, whether tangible (cash, inventories) or intangible (patent, goodwill).  These may have a short term time horizon - such as cash, accounts receivable, and inventory- or a long term value (such as equipments, land, and buildings).

Challenge:

• What examples of assets can you think of?  Are they long term or short term assets? Share your answer in the comments section below and receive a coupon to one of Lean Strategies International LLC's courses.

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