I’m sitting in a building
this building is an asset of the company
it’s important to note though I am NOT an asset of my company
It doesn’t own me.
They don’t control me.
They can’t buy and sell.
So assets are the things that companies own and control that have a benefit to the company.
I’m going to list a few examples of an asset here on this page.
The most common and probably the most important example of an asset is cash and the reason I say it’s the most important is when a company runs out of cash they’re dead meat.
Another type of common type of asset you’re going to see is accounts receivable and the shorthand for that is whenever a customer comes in they buy something from you and they don’t pay their bill right away.
they promise they’re going to pay later ah it’s a short-term asset to you.
they owe you money.
that’s an account receivable.
The next type of asset is inventory.
If you think of Walmart or Home Depot and they have stuff sitting on their shelves well that stuff is assets to them.
That stuff they own in control they’re planning to sell it to you that’s called inventory and that’s an asset to that type of company.
The final types of assets I’m going to list are property like land, buildings and last equipment.
Any piece of equipment like the computer I mentioned earlier or the desk, these are assets.
The building I’m in is an asset and the land it’s sitting on is also an asset these are all examples of assets. Click here if you want to discover more about our financial planning Brisbane.
They’re all stuff companies can own and control and they are no doubt good for the company.