Assets in accounting are the property of the company, which it disposes to carry out it’s activities and make a profit.
Asset accounting is the control of owned real estate, goods, stocks, raw materials, cash.
Assets are divided into
• current assets, non-current assets;
• intangible assets, tangible assets;
• low-liquid assets, highly liquid assets, and illiquid assets.
Non-current assets – those resources of the company, the service life of which exceeds 1 year: fixed assets, long-term financial liabilities, construction in progress, etc. Current assets – assets of a company that are consumed during one production cycle or written off during the year.
Assets are economic assets over which the company obtained control as a result of past events, and which should bring it economic benefits in the future.
Intangible assets are the results of intellectual activity and other objects of intellectual property. Tangible assets – assets that have a tangible form – as fixed assets; profitable investments in material assets; stocks.
Assets of high, medium, low liquid and illiquid is the rate of asset turnover.
Company property is tangible and intangible objects, assets that the company uses in its professional activities. At the initial stage of the company’s activity, its property is the contributions of the founders or the personal funds of the owner. If the company’s activity is profitable, then the size of the property grows, and in case of unprofitable work, the loss of the original assets is possible.
Based on a correct understanding of the decoding of assets, you can understand how profitable the company is, what its strengths are, and what the focus is on in its activities. With the right asset analysis, you can get a big picture of your business.
The Valen Group can help decipher the company’s assets for the business owner, analyze the firm and its strengths, and summarize the information for your comfort.