{"id":9905,"date":"2023-02-01T12:02:14","date_gmt":"2023-02-01T06:32:14","guid":{"rendered":"https:\/\/www.tickertape.in\/glossary\/?p=9905"},"modified":"2023-02-01T12:08:50","modified_gmt":"2023-02-01T06:38:50","slug":"assets-101-understanding-types-importance-and-more","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/glossary\/assets-101-understanding-types-importance-and-more\/","title":{"rendered":"Assets 101: Understanding Types, Importance, and More"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_22 counter-hierarchy counter-numeric\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">You will Learn About: <\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/glossary\/assets-101-understanding-types-importance-and-more\/#What-is-an-asset\" title=\"What is an asset?&nbsp;\">What is an asset?&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/glossary\/assets-101-understanding-types-importance-and-more\/#Return-on-equity-Highlights\" title=\"Return on equity: Highlights\">Return on equity: Highlights<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/glossary\/assets-101-understanding-types-importance-and-more\/#Importance-of-assets\" title=\"Importance of assets\">Importance of assets<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/glossary\/assets-101-understanding-types-importance-and-more\/#Types-of-assets\" title=\"Types of assets\">Types of assets<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/glossary\/assets-101-understanding-types-importance-and-more\/#What-are-examples-of-assets\" title=\"What are examples of assets?\">What are examples of assets?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/glossary\/assets-101-understanding-types-importance-and-more\/#Is-labour-an-asset\" title=\"Is labour an asset?&nbsp;\">Is labour an asset?&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/glossary\/assets-101-understanding-types-importance-and-more\/#Current-assets-vs-non-current-assets\" title=\"Current assets vs non-current assets&nbsp;\">Current assets vs non-current assets&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/glossary\/assets-101-understanding-types-importance-and-more\/#What-is-the-difference-between-assets-and-liabilities\" title=\"What is the difference between assets and liabilities?\">What is the difference between assets and liabilities?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/glossary\/assets-101-understanding-types-importance-and-more\/#Comparison-Current-assets-liquid-assets-and-absolute-liquid-assets\" title=\"Comparison: Current assets, liquid assets, and absolute liquid assets&nbsp;\">Comparison: Current assets, liquid assets, and absolute liquid assets&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/glossary\/assets-101-understanding-types-importance-and-more\/#Importance-of-asset-classification\" title=\"Importance of asset classification\">Importance of asset classification<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/glossary\/assets-101-understanding-types-importance-and-more\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/glossary\/assets-101-understanding-types-importance-and-more\/#FAQs\" title=\"FAQs-\">FAQs-<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-an-asset\"><\/span><strong>What is an asset?&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/cdn.shopify.com\/s\/files\/1\/0070\/7032\/files\/WHAT_IS_AN_ASSET.png?format=webp&amp;v=1657218931&amp;width=1024\" alt=\"\"\/><figcaption class=\"wp-element-caption\">Image source: <a href=\"https:\/\/www.shopify.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Shopify<\/a><\/figcaption><\/figure><\/div>\n\n\n<p>An asset is a physical or non-physical item of economic value owned by a business. These items help the business to create economic value and generate revenues. Assets are shown on a company\u2019s balance sheet to determine a company\u2019s financial position on a given day. For example, a business invests in machinery intending to provide future benefits in the form of higher revenues (due to increased production).&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-uagb-advanced-heading uagb-block-37fca231\"><h2 class=\"uagb-heading-text\"><span class=\"ez-toc-section\" id=\"Return-on-equity-Highlights\"><\/span>Return on equity: Highlights<span class=\"ez-toc-section-end\"><\/span><\/h2><\/div>\n\n\n\n<ul>\n<li>Assets are valuable resources owned by a business, expected to create economic benefits for a business.<\/li>\n\n\n\n<li>Assets include plant, property, goodwill, inventory, cash, marketable securities, etc.&nbsp;<\/li>\n\n\n\n<li>There are various types of assets, such as current assets, non-current assets, tangible assets, intangible assets, financial assets, etc.<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Importance-of-assets\"><\/span><strong>Importance of assets<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Assets provide economic or monetary benefits to a business. There may be operating assets, non-operating assets, leased assets, etc. For example, inventory is a type of operating asset, and fixed deposits are a type of non-operating asset. There may also be personal or company assets depending on the ownership and use of the assets. For instance, a car might be a personal asset but is considered a company asset when purchased for business operations.&nbsp;<\/p>\n\n\n\n<p>Also, an asset for one company might not be an asset for another. For example, furniture can be an asset for a cement company but not for a company dealing in furniture.<\/p>\n\n\n\n<p>Additionally, assets also provide a competitive advantage to companies and help them gain market share. For instance, the strategic position of a mine can help a mining company earn a competitive edge over other companies. Similarly, access to a range of exclusive software is an asset for an IT company.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Types-of-assets\"><\/span><strong>Types of assets<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/cdn.shopify.com\/s\/files\/1\/0070\/7032\/files\/Types_of_Assets.jpg?v=1661179489&amp;width=1024\" alt=\"\"\/><figcaption class=\"wp-element-caption\">Image source: <a href=\"https:\/\/www.shopify.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Shopify<\/a><\/figcaption><\/figure><\/div>\n\n\n<p>Assets can be categorised in the following ways-&nbsp;<\/p>\n\n\n\n<ol>\n<li><strong>Duration<\/strong><\/li>\n<\/ol>\n\n\n\n<ul>\n<li><strong>Current<\/strong><strong> asset<\/strong><strong>s<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Current assets are short-term assets that can be converted into cash within a financial year. These are usually recurring as they occur due to the day-to-day operations of a business. For example, marketable securities, inventory, accounts receivables, etc.<\/p>\n\n\n\n<ul>\n<li><strong>Non-current <\/strong><strong>asset<\/strong><strong>s (Fixed assets)<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Non-current assets are long-term assets that cannot easily be converted into cash or cash equivalents within a financial year. The value of these assets cannot be consumed in a year. Thus, these assets are capitalised. There is usually a certain <a href=\"https:\/\/www.tickertape.in\/glossary\/depreciation-meaning\/\">depreciation<\/a> or amortisation rate charged on such assets. For example, PPE (Property, plant and equipment), copyrights, trademarks, etc.&nbsp;<\/p>\n\n\n\n<ol start=\"2\">\n<li><strong>Physical existence<\/strong><\/li>\n<\/ol>\n\n\n\n<ul>\n<li><strong>Tangible<\/strong><strong> asset<\/strong><strong>s<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Tangible assets or physical assets are assets that have a physical existence. These assets usually help in running the core operations of a business. For example, a steel manufacturing company owns a steel plant for production.<\/p>\n\n\n\n<ul>\n<li><strong>Intangible assets<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Intangible assets do not have any physical existence. These assets can either be created or acquired. Only acquired intangible assets are recorded in the books of accounts. Internally generated intangible assets are not recorded in the books of accounts. For example, a company\u2019s brand reputation is not recorded on the balance sheet.&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Financial assets<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Financial assets are those assets that arise due to contracts or ownership. For example, stocks, bonds, bank deposits, <a href=\"https:\/\/www.tickertape.in\/glossary\/mutual-fund-meaning\/\">mutual funds<\/a>, etc. They are usually valued at market prices and are held for <a href=\"https:\/\/www.tickertape.in\/glossary\/investment-meaning-types-how-to-invest-and-savings-vs-investments\/\">investment<\/a> purposes.&nbsp;<\/p>\n\n\n\n<p><em>Read our article on \u2018Liabilities\u2019. Don\u2019t wait; visit the Tickertape page today.&nbsp;<\/em><\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What-are-examples-of-assets\"><\/span><strong>What are examples of <\/strong><strong>asset<\/strong><strong>s?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Some examples of assets are machinery, equipment, property, goodwill, intellectual property, cash, marketable securities, prepaid expenses, inventory, goodwill, royalties, deferred tax assets, etc.&nbsp;<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Is-labour-an-asset\"><\/span><strong>Is labour an<\/strong><strong> asset<\/strong><strong>?&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>No, labour is not an asset for the company.&nbsp;<\/p>\n\n\n\n<p>Labour provides economic value to a business and might also provide a competitive edge. However, assets are owned by the company, and labour cannot be owned by any business. Furthermore, labour is compensated through salaries and wages, which are expensed and thus, labour cannot be treated as an asset.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Current-assets-vs-non-current-assets\"><\/span><strong>Current <\/strong><strong>asset<\/strong><strong>s vs non-current <\/strong><strong>asset<\/strong><strong>s&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Current assets<\/strong><\/td><td><strong>Non-current assets<\/strong><\/td><\/tr><tr><td>These assets can be easily converted into cash and cash equivalents.<\/td><td>These assets cannot be easily converted into cash and cash equivalents.<\/td><\/tr><tr><td>These assets are short-term assets.<\/td><td>These assets are usually held for a longer duration (more than a financial year).<\/td><\/tr><tr><td>Such assets do not have any depreciation or amortisation.&nbsp;<\/td><td>These assets are depreciated\/amortised.<\/td><\/tr><tr><td>The value of current assets is drawn for one year only.&nbsp;<\/td><td>The value of fixed assets is spread over the number of years the asset will be used.<\/td><\/tr><tr><td>Example- prepaid expenses, inventory, accounts receivables, etc.<\/td><td>Example- plant, property, equipment, goodwill, etc.&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What-is-the-difference-between-assets-and-liabilities\"><\/span><strong>What is the difference between assets and liabilities?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Asset<\/strong><strong>s<\/strong><\/td><td><strong>Liabilities<\/strong><\/td><\/tr><tr><td>Assets are items that provide economic value to the business.<\/td><td>Liabilities are debts that the business owes to external parties or outsiders.&nbsp;<\/td><\/tr><tr><td>Assets help conduct business operations such as generating revenues, increasing profits, etc.&nbsp;<\/td><td>Liabilities help finance business operations, such as manufacturing a product and more.<\/td><\/tr><tr><td>Acquiring assets usually results in cash outflows.<\/td><td>Incurring liabilities usually result in cash inflows.<\/td><\/tr><tr><td>As per the accounting rules, assets are debited.&nbsp;<\/td><td>As per the accounting rules, liabilities are credited.&nbsp;<\/td><\/tr><tr><td>Example- machinery, accounts receivables, prepaid expenses, etc.<\/td><td>Example- loans, accounts payables, accrued expenses, etc.&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Comparison-Current-assets-liquid-assets-and-absolute-liquid-assets\"><\/span><strong>Comparison: Current <\/strong><strong>asset<\/strong><strong>s, liquid assets, and absolute liquid assets&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Current assets<\/strong><\/td><td><strong>Liquid assets<\/strong><\/td><td><strong>Absolutely liquid assets<\/strong><\/td><\/tr><tr><td>The degree of liquidity of current assets is comparatively low.<\/td><td>The degree of liquidity of liquid assets is comparatively moderate.<\/td><td>The degree of liquidity of absolute liquid assets is comparatively high.<\/td><\/tr><tr><td>It includes cash, cash at the bank, marketable securities, inventories, accounts receivables, and prepaid expenses.<\/td><td>It includes cash, cash at the bank, marketable securities, and accounts receivables.<\/td><td>It includes cash, cash at the bank, and marketable securities.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Importance-of-asset-classification\"><\/span><strong>Importance of <\/strong><strong>asset <\/strong><strong>classification<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Assets depict the financial health of a company.&nbsp;<\/p>\n\n\n\n<p>Thus, the classification of assets is essential to determine a company\u2019s liquidity position, solvency, and risk. Classification into current assets and fixed assets helps in planning for working <a href=\"https:\/\/www.tickertape.in\/glossary\/what-is-capital-definition-of-capital-types-and-its-importance\/\">capital<\/a> requirements and also in knowing the long-term financial position of a company.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Assets, in simple words, are the resources that a company owns. These assets can be of various types depending on their nature, liquidity and more. Assets determine a company&#8217;s financial position and can help predict growth and risk. It is paramount to understand what assets are to help decipher a company\u2019s standing.&nbsp;<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs-<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-uagb-faq uagb-faq__outer-wrap uagb-block-8185d4c7 uagb-faq-icon-row uagb-faq-layout-accordion uagb-faq-expand-first-true uagb-faq-inactive-other-true uagb-faq__wrap uagb-buttons-layout-wrap uagb-faq-equal-height\" data-faqtoggle=\"true\" role=\"tablist\">\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-09a88c05\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What is a capital asset?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Capital assets can be defined as those assets that are expected to yield revenue long-term. In other words, these assets have a useful life of over a year. Buildings, plants, properties, and furniture all fall under capital assets.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-caa521ed\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What is asset allocation?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Asset allocation can be defined as the process of allocating an investment portfolio amongst different asset classes like stocks, bonds, real estate, gold, and more. Asset allocation helps mitigate risk and can help achieve different financial goals.\u00a0<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-d624b8d1\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What is asset monetisation?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Asset monetisation can be defined as a process where one form of asset or financial instrument is liquidity or converted into a different form. This is done to generate cash, pay off debt or finance operations, or do other business activities.\u00a0<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-616b2c4d\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What is wasting assets?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Wasting assets are those assets that deplete and extinguish with time and have a limited life span. Fixed assets like vehicles, machinery, and more follow under wasting assets.\u00a0<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-e591aac0\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What are fictitious assets?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Fictitious assets are fake assets with no physical existence and realisable value. They are shown in the financial statements because these assets provide long-term benefits to a business. Fictitious assets examples include preliminary expenses, underwriting commission, etc.\u00a0<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-c9e902df\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What is the meaning of an asset?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">An asset is a physical or non-physical item of economic value owned by a business. It also provides a competitive advantage to companies and helps them gain market share. However, an asset for one company might not be an asset for another.<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Are you wondering what comprises an asset? Read more to know about assets, their types, and more.<\/p>\n","protected":false},"author":90,"featured_media":9906,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[1],"tags":[1929],"jetpack_featured_media_url":"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01.png","uagb_featured_image_src":{"full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01.png",2086,1086,false],"thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01-150x150.png",150,150,true],"medium":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01-300x156.png",300,156,true],"medium_large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01.png",768,400,false],"large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01-1024x533.png",770,401,true],"1536x1536":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01-1536x800.png",1536,800,true],"2048x2048":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01-2048x1066.png",2048,1066,true],"authorship-box-avatar":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01-150x150.png",150,150,true],"authorship-box-related":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01-70x70.png",70,70,true],"post-thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01-270x180.png",270,180,true],"contentberg-main":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01-770x515.png",770,515,true],"contentberg-main-full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01-1170x508.png",1170,508,true],"contentberg-slider-stylish":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01-900x515.png",900,515,true],"contentberg-slider-carousel":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01-370x370.png",370,370,true],"contentberg-slider-grid-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01-554x466.png",554,466,true],"contentberg-slider-grid-b-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01-306x466.png",306,466,true],"contentberg-slider-bold-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01-150x150.png",150,150,true],"contentberg-grid":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01-370x245.png",370,245,true],"contentberg-list":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01-260x200.png",260,200,true],"contentberg-list-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01-370x305.png",370,305,true],"contentberg-thumb":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01-87x67.png",87,67,true],"contentberg-thumb-alt":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/01-150x150.png",150,150,true]},"uagb_author_info":{"display_name":"Anjali Chourasiya","author_link":""},"uagb_comment_info":0,"uagb_excerpt":"Are you wondering what comprises an asset? Read more to know about assets, their types, and more.","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/9905"}],"collection":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/users\/90"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/comments?post=9905"}],"version-history":[{"count":3,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/9905\/revisions"}],"predecessor-version":[{"id":9921,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/9905\/revisions\/9921"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media\/9906"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media?parent=9905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/categories?post=9905"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/tags?post=9905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}