An asset is anything of economic value that a company or individual owns or controls. Assets are resources that can generate revenue, be converted to cash, or provide other future economic benefits.
Assets are classified as current assets (cash, inventory, receivables — used within one year) and non-current assets (property, equipment, patents — held for more than a year). They can also be tangible (physical) or intangible (intellectual property, goodwill).
Assets form the left side of the balance sheet and the foundation of the accounting equation: Assets = Liabilities + Equity. The more valuable assets a company has, the stronger its financial position.