How Do You Know What Are Assets?

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Asset Definition

Assets are owned values by individuals, companies, or governments and can include tangible and intangible items like property or intellectual property.

Asset Function

Assets generate income, provide value or serve as collateral for borrowing money, making them an important component of financial plans.

Financial Benefit

Understanding how assets work is key to financial success, as assets can generate income, protect from financial risk, and support long-term financial goals.

Types of Asset

There are different types of assets including fixed assets, liquid assets, tangible assets, intangible assets, and current assets.

Fixed Asset

Fixed assets are long-term and used to produce income, but not easily converted into cash, while liquid assets are easily converted but typically do not generate much income.

Liquid Asset

Tangible assets have a physical form and can be seen or touched, while intangible assets have no physical form like intellectual property.

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