IT Financials Glossary

Asset

Posted in Accounting by mgentle on August 26, 2010

Asset: tangible or intangible things that are directly or indirectly able to generate revenue over several years, thus allowing a company to produce goods or services. An asset therefore has a monetary value and can be sold if required. Tangible assets are usually called fixed assets, and include things like plant, property or equipment. Examples of intangible assets include things like patents and brands.

FURTHER READING: for an accounting view of fixed assets check out the following article by Michael Sack Elmaleh.

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4 Responses

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  1. Amortization said, on April 5, 2011 at 20:06

    […] the technical term for the depreciation of non-material or intangible assets like patents, trademarks or brands. Filed Under: Accounting Return to top of […]

  2. Balance sheet said, on April 5, 2011 at 20:06

    […] sheet: A snapshot of a company’s value at a specific point in time. It contains two parts, assets (cash, accounts receivable, equipment…) and liabilities (accounts payable and other debt). The […]

  3. Depreciation said, on April 7, 2011 at 00:09

    […] the reduction in value of an asset over its useful life (usually several years) through usage or […]

  4. Write off said, on April 7, 2011 at 01:33

    […] off: to reduce the value of an asset to zero by charging it to expense or loss, resulting in the asset being removed from the books. So, […]


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