Anything of economic value owned by an individual or organization.
An asset is anything that has economic value and is owned by a person or business. Assets can be tangible—like houses, vehicles, equipment, and inventory—or intangible, like patents, brand value, and goodwill. On a balance sheet, assets are listed and valued, then offset by liabilities (debts) to calculate net worth. Current assets (cash, receivables, inventory) can be converted to cash quickly; fixed assets (buildings, equipment) are long-term holdings. Understanding your personal assets is crucial for calculating net worth and making informed financial decisions.