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Assets Definition

December 8, 2015

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Term Definition
Assets are items of value, and can be tangible (things you can touch, such as a desk) and intangible (something that cannot be touched, such as a copyright). These items are included on a financial statement called a Balance Sheet.

Extended Definition
Assets are considered valuable items. There are two types: tangible and intangible. A tangible asset is something that can be touched such as a building, truck, table, or computer. Intangible assets include goodwill and trademarks. It is more difficult to determine the value of intangible assets, but they still have value for your business. Assets are also classified as Current and Long-Term. Current assets could be turned into cash with a short period of time (12 months), if necessary. Assets are reported on a Balance Sheet, which is a common financial statement.

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