Economic Asset
An Economic Asset is a cash convertible resource (often legal property) of an economic agent.
- Context:
- It can be exchanged with another Economic Agent (in an economic transaction).
- It can (typically) be a Scarce Resource.
- It can range from being a Tangible Asset to being an Intangible Asset,
- It can range from being a Liquid Asset to being an Illiquid Asset,
- Example(s):
- an (owned) Economic Resource.
- an (owned) Building.
- a Capital Equipment.
- …
- Counter-Example(s):
- an Economic Debt.
- an Economic Liability.
- an (abandoned) Building.
- See: Economic Service, Economic Good, Financial Accountancy, Economic Value, Ownership, Fair Market Value, Goodwill (Accounting), Intellectual Property.
References
2014
- (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/asset Retrieved:2014-4-5.
- In financial accounting, an asset is an economic resource. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset. Simply stated, assets represent value of ownership that can be converted into cash (although cash itself is also considered an asset). The balance sheet of a firm records the monetary[1] value of the assets owned by the firm. It is money and other valuables belonging to an individual or business. Two major asset classes are tangible assets and intangible assets. Tangible assets contain various subclasses, including current assets and fixed assets.[2] Current assets include inventory, while fixed assets include such items as buildings and equipment.[3]
Intangible assets are nonphysical resources and rights that have a value to the firm because they give the firm some kind of advantage in the market place. Examples of intangible assets are goodwill, copyrights, trademarks, patents and computer programs,[3] and financial assets, including such items as accounts receivable, bonds and stocks.
- In financial accounting, an asset is an economic resource. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset. Simply stated, assets represent value of ownership that can be converted into cash (although cash itself is also considered an asset). The balance sheet of a firm records the monetary[1] value of the assets owned by the firm. It is money and other valuables belonging to an individual or business. Two major asset classes are tangible assets and intangible assets. Tangible assets contain various subclasses, including current assets and fixed assets.[2] Current assets include inventory, while fixed assets include such items as buildings and equipment.[3]
- ↑ J. G. Siegel, N. Dauber & J. K. Shim, "The Vest Pocket CPA", Wiley, 2005.
There are different methods of assessing the monetary value of the assets recorded on the Balance Sheet. In some cases, the Historical Cost is used; such that the value of the asset when it was bought in the past is used as the monetary value. In other instances, the present fair market value of the asset is used to determine the value shown on the balance sheet.
- ↑ J. Downes, J.E. Goodman, "Dictionary of Finance & Investment Terms", Baron's Financial Guides, 2003
- ↑ 3.0 3.1 J. Downes, J.E. Goodman, "Dictionary of Finance & Investment Terms", Baron's Financial Guides, 2003; and J. G. Siegel, N. Dauber & J. K. Shim, "The Vest Pocket CPA", Wiley, 2005.
