We’ll also look at two additional types of assets that are important for businesses.
The four main types of assets are liquid assets, illiquid assets, tangible assets and intangible assets. While countless things can be considered assets, they don’t all fall into the same class. The opposite of an asset is a liability, which is money you owe. This could mean equipment used in manufacturing or intellectual property such as patents. You can own an asset as an individual or jointly with someone else, like a parent, partner or spouse.įor a company, assets are considered to be anything that will provide it with a positive future economic benefit. “An asset is a thing that you own outright that holds value,” says Katharine Perry, certified financial planner (CFP) and financial advisor at Fort Pitt Capital Group. That furniture in your living room? Even though your partner’s couch might not be your favorite, it’s still an asset. Your car is an asset, just like the money you hold in your checking account.
What Is an Asset?Īn asset is a possession that can be exchanged for cash. Practically everybody owns assets-they’re nothing more or less than a thing of value that can be sold for cash. If you thought that only the wealthy have assets, you’re about to become wealthy.
