• Any possession that has value in an exchange.

• (1) Anything that an individual or a corporation owns that has economic value to its owner. Examples of an asset are cash, accounts receivable, inventory, real estate, and securities. (2) A Balance Sheet item expressing what a corporation owns.


Follow this link for all the terms related to asset.

 Embedded terms in definition
 Accounts receivable
Balance sheet
Real estate
 Referenced Terms
 Abs: See Asset Backed Securities.

 Accumulated depreciation: Is the amount of depreciation already taken against an Asset. Assume that a computer costs $6,000 and has an expected lifeof 5 years and no residual value. After 3 years the accumulated depreciation would be $3,600 (3 x $1,200 annual depreciation).

 Accumulative depreciation: The total cumulative amount of depreciation expense that had been recorded since the fixed Asset was acquired.

 Acid test ratio: Also called the quick ratio, the ratio of current Assets minus inventories, accruals, and prepaid items to current liabilities.Is another term to describe the Quick Asset Ratio. It measures an organization's liquidity by adjusting current assets by subtracting inventories and then dividing by the current liabilities.See Quick Ratio.

 Actuals: The physical commodity underlying a futures contract. Cash commodity, physical.Is the real or underlying Asset for a derivative product or commodity market.The cash commodity as opposed to the futures contract. Also known as cash or the spot.

 Related Terms

<< Assessed value Asset activity ratios >>

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