Asset

Assets are economic entities that give rise to future economic benefit and is controlled by the entity as a result of past transaction or other events. It is probable that the future economic benefit will eventuate and the amount of asset can be measured with reliability from source document which makes it representationally faithful. Examples include cash, equipment, buildings, and land.

Assets may be classified in many ways. In a company's balance sheet certain divisions are required by generally accepted accounting principles (GAAP), which vary from country to country.

Current assets are cash and other assets expected to be converted to cash, sold, or consumed either in a year or in the operating cycle

Fixed assets are also referred to as PPE (property, plant, and equipment), or tangible assets, these are purchased for continued and long-term use in earning profit in a business