Asset Templates

General FAQs

• What is Asset?

  An asset is an economically valued resource of any company, organization, country, and individual. The assets are used by the owners in a way that gives benefits in the future. It is listed on the organization's balance sheet and it adds value to the firm and benefits its operations. 

• What are the Examples of Assets?

  Cash or cash equivalent, prepaid expenses, equipment, accounts receivable, property, plant, equipment, inventory, investments, vehicles, furniture, trademarks, patent, etc. are all examples of assets. 

• What is Asset Management and Its Benefit?

  It is a system that enables you to keep a track of the assets or the property and trying to increase the returns. It has several benefits like:

  • Enhanced asset use and acquisition. 
  • Increased regulatory compliance. 
  • Enhanced business practice and making better business decisions. 
  • Enhanced reliability. 
  • System integrity. 
  • Cost savings. 

• How to Classify Assets?

  • Convertible Assets: Assets that can be easily Convertible into cash like short-term deposits, land, machinery, office supplies. 
  • Physical Existence: It includes assets based on physical existence, i.e., tangible or intangible like stock, building, or goodwill, patent.
  • Usage: These assets are classified based on their business operation usage like copyright, short-term investments.

• What are the Properties of an Asset?

  Ownership, economic value, and resource are the three key properties of assets.  Asset ownership can any time be converted into cash or cash equivalent. Economic assets can be exchanged or sold for their monetary value. Resource assets can be used to generate revenues in the future.