Assets

An asset is an item which appears on a balance sheet and has been acquired by the company with the expectation that it will yield future financial benefit. This benefit may be achieved through enhanced purchasing power, revenue generation or cash.

Different tyes of assets exist:
Current assets are those assets which you expect to either convert to cash or have expire in one year, or one operating cycle—whichever is longer. Examples of current assets include cash (cash on hand, bank accounts), accounts receivable (money owed by customers) and inventory (raw materials, work in progress, finished goods).
Long-term assets are those which you use in the operation of your company and which will continue to offer benefit beyond a single year or operating cycle. Examples of long-term assets include buildings, machinery and equipment (also known as fixed assets ). Another type of long-term asset is an intangible asset . This is an intangible item that is expected to produce value simply through the rights and privileges conferred by owning it (e.g., trade secrets, industry know-how or human capital). Intangible assets by their nature are difficult to measure and are considered to carry a higher degree of risk than other types of assets.

References

Markle, K. (2004, August).Introduction to Accounting.Presentation delivered at Schulich School of Business, York University, Toronto, Canada.
Pratt, Jamie. (2003). Financial Accounting in an Economic Context.New York: John Wiley& Sons. 

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