Financial StatementsBeginner

Assets

Everything a company owns or controls that is expected to bring future benefit.

Detailed explanation

Current assets (cash, receivables, inventory) turn into cash within a year. Non-current assets (property, plant, equipment, intangibles, long-term investments) are used over many years.

Formula

Assets = Liabilities + Shareholders' equity

Why it matters

The left side of the balance sheet: what the business has to work with.

Key points

  • Split into current and non-current.
  • Shown at book value, not market value.
  • Must always equal liabilities plus equity.

Related terms

Balance SheetLiabilitiesShareholders' Equity

More in Financial Statements

Income StatementRevenueCost of Goods SoldGross MarginEBITDAEBIT

Educational content only. Definitions and examples are illustrative and are not investment, tax or legal advice.