An asset is anything of value that is owned by an individual or entity, which has the potential to provide future economic benefit. Assets can be tangible, such as physical property like real estate, vehicles or machinery, or intangible, such as intellectual property, patents, trademarks, copyrights, or brand recognition.
Assets can also be classified as current or non-current depending on their expected useful life. Current assets are those that are expected to be converted into cash within one year, while non-current assets are those that are expected to provide economic benefits beyond one year.
Overall, assets are an essential component of financial accounting and are used to evaluate the financial position of an individual or company.