Asset
Any resource with economic value owned or controlled by an individual or business.
What is Asset?
An asset is a resource with measurable economic value that is expected to provide future benefit to its owner. Assets appear on the left side of a balance sheet and can be broadly categorized as current assets (cash, receivables, inventory — convertible to cash within a year) or non-current assets (property, equipment, intangibles — held for longer-term use). A company's total assets must equal the sum of its liabilities and shareholders' equity, as expressed in the fundamental accounting equation: Assets = Liabilities + Equity.
Example
Microsoft's balance sheet for fiscal year 2024 shows total assets of approximately $512 billion, including $80 billion in cash and short-term investments (current assets), $166 billion in goodwill and intangible assets, and $97 billion in property and equipment. These assets represent everything Microsoft owns that generates economic value.