Question

What do u understand by assets and what are different types of assets ???​ class 11th accounts

Answer 1

An asset is anything that has current or future economic value to a business.

Step-by-step explanation:

(i) Fixed Assets: Fixed assets are those assets which last for a long period of time or the benefit of these assets are availed considerably long period i.e., more than a year. In this way, fixed assets are assets held on a long-term basis, such as land, buildings, machinery, plant, furniture and fixtures. These assets are used for the normal operations of the business.

(ii) Current Assets: Current assets are those assets which get converted into cash within an operating cycle generally one year. In this way, current assets are assets held on a short-term basis such as debtors (accounts receivable), bills receivable (notes receivable), stock (inventory), temporary marketable securities, cash and bank balances.

Answer 2

An asset refers to a resource possessed by someone in order to get a positive outcome .

It is controlled and owned by an individual or an organisation for various purposes and hold a value of it's own.

There are 6 types of assets :

• Current asset

These types of assets can be converted into money from products within a short frame of time. Ex: mutual funds and goods one holds under their company.

• Non-current asset

These types of assets are for long term use and hold more value than current assets. For example : any piece of land one owns or some machinery and vehicle.

• Tangible asset

These type of assets can be felt and seen and aren't hidden in plain sight ,they are helpful in operating business. Ex : machineries ,cash,land etc.

• Intangible asset

Unlike tangible asset ,they don't have a physical appearance but they if hold righteous would result in more profit than tangible asset could provide.

for example : goodwill and brand equity along with intellectual property.

• operating asset

They are the assets require to operate a business or a company on daily basis .These includes machines and cash and the work power along with workplace.

• non-operating asset

These assets unlike operating assets are not used on regular basis but required to generate revenue for the business. These includes : short term investments and vacant land .