So the first term I want to define is assets I’m going to look up the Wikipedia definition.
Wikipedia is not a bad thing.
I know people crap on it from time to time but it’s not a bad thing.
Assets are economic resources and in tangible and intangible as capable owned or controlled to produce value and that is held to have positive economic value is considered an asset.
Simply stated assets represent the ownership of value that can be converted into cash although cash is also considered an asset and that goes on.
I think this is a good definition and a fine definition. I think what you’ll find if you look at it up in your textbook is they’ll often talk about future economic benefit being the key distinguisher of an asset what I would say is at an introductory level these are both too complex so even your textbook or Wikipedia might be a little too complex or a little bit off.
I would say a very beginning level you need to think of an asset as the things a company owns and controls that has a benefit to the company so something the company owns and controls that’s good for the company so I’m sitting here in my office I have a desk I don’t own a desk but my university does .
The desk is an asset of the university there’s a computer I’m looking at my computer here here’s my mouse these are all assets of my company. Later we can discuss about the Rental Property Tax Return.