Examples of assets
/What are Assets?
An asset is something that is expected to yield a benefit in a future period. If an asset is expected to be entirely consumed within the current period, then it is instead charged to expense in that period. In a business, assets are aggregated into different line items on the balance sheet.
Examples of Tangible Assets
Examples of assets that are found on the balance sheet are as follows (presented in alphabetical order):
Bond investments
Building fixed assets - includes the interest cost incurred during construction.
Cash - includes the cash in all savings and checking accounts, plus petty cash.
Certificate of deposit investments
Commercial paper investments
Computer equipment fixed assets
Computer software fixed assets
Finished goods inventory - is reduced by any reserve for obsolete inventory.
Furniture and fixture fixed assets
Land fixed assets
Leasehold improvement fixed assets - can be quite short term, since the asset only lasts until the lease expires.
Loans receivable from employees - is reduced by any reserve for loans unlikely to be paid.
Machinery fixed assets
Money market investments
Non-trade receivables - is reduced by a reserve for any receivables unlikely to be paid.
Notes receivable - is reduced by a reserve for any notes unlikely to be paid.
Office equipment fixed assets
Parts and supplies
Stock in other companies
Tools
Trade receivables - is reduced by a reserve for any receivables unlikely to be paid.
Vehicles fixed assets
Warrants to purchase shares
Work-in-process inventory - is reduced by any reserve for obsolete inventory.
Related AccountingTools Courses
Examples of Intangible Assets
Some fixed assets are classified as intangible, and are recorded on the balance sheet within a separate line item. These items are either purchased or obtained as part of an acquisition. Any internally-generated intangible assets are charged to expense as incurred; there is no recorded asset. Examples of these intangible assets are:
Brand names
Broadcast licenses
Copyrights
Domain names
Easements
Film libraries
Franchise agreements
Landing rights
Licenses
Mineral rights
Patents
Permits
Royalty agreements
Supplier contracts
Trademarks
Examples of Non-Recognized Assets
Some assets are not found on the balance sheet, typically because they are internally-generated assets or valuable processes that the accounting standards do not allow an organization to recognize as assets. Examples of these non-recognized assets are:
Internal quality control processes
Internal research and development processes
Staff training investments
The value of a brand image
Current Assets vs. Long-Term Assets
A business classifies its assets as either current assets or long-term assets on its balance sheet. The main differentiating factor between these two classifications is that current assets are expected to be consumed within one year, while long-term assets are expected to provide the business with value for a more extended period of time. An example of these classifications appears in the following exhibit of a balance sheet.
