An asset in business terms is anything of value owned by somebody or a company.  Cash is an asset.  Securities, such as stocks and bonds, are assets.  Land and buildings are assets.  Equipment and invetory are assets.  I’m sure you are getting the picture.  An asset does not even need to be tangible, there are intangible assets.  These include things such as copywrights and goodwill.  Intangible assets are explained in further detail here.

Assets can be divided into quite a few categories.

There are Current Assets:

• Cash and cash equivalents
• Short-term investments
• Receivables
• Inventory
• Prepaid expenses

Long Term Investments

• Stocks
• Bonds
• Fixed Assets not used in operations
• Investments in other companies or funds

Fixed Assets:  All of these are used in the operation of the business and are therefore fixed assets instead of simply assets that are an investment.  In accounting they are written off each year against profits from their depreciation over their life, this is referred to as accumulated depreciation in the balance sheet.  In managerial accounting fixed assets are called capital assets.

• Land
• Buildings
• Equipment

Intangible Assets:

• Goodwill
• Copyright
• Trademark
• Patents
• etc.