Textbook Definition: Resources owned by a company that has future economic value that can be measured and can be expressed in dollars. Examples include cash, investments, accounts receivable, inventory, supplies, land, buildings, equipment, and vehicles.

Assets are reported on the balance sheet usually at cost or lower. Assets are also part of the accounting equation: Assets = Liabilities + Owner's (Stockholders') Equity.

Some valuable items that can't be measured and expressed in dollars include the company's outstanding reputation, its customer base, the value of successful consumer brands, and its management team. As a result, these items are not reported among the assets appearing on the balance sheet. These are often referred to as soft assets.

Definition You Need to Know: Assets are things of value that your business owns. Also known as, stuff you own. These can be cash, equipment, inventory, accounts receivable (money that has yet to be paid by customers).

If you're thinking about your personal life and what assets you have, think of things like your personal bank account balance, your investments and retirement accounts, your home (if you own it), vehicles, crypto, that piece of artwork that you just found out is actually worth something, your baseball card collection, those Gucci bags. These are all assets.

And whether thinking about your personal life or your business, assets are a very important part of the accounting equation ASSETS = LIABILITIES + EQUITY.

Where are they on my financials? Assets show up on the balance sheet.