Types of Assets

Assets are those which help an individual or a company in generating returns, it can be in tangible or intangible form. Given below are the various types of assets which a company or individual owns–

  1. Fixed assets – They are those which are used by the person for long term and therefore once purchased they are held by individual or company for many years. Some examples of it are plant and machinery, building, land, furniture and so on.
  2. Current assets – They are those which are used by the person during a year, in short they are those which are used within 12 months of their purchase. Some examples of it are sundry debtors, prepaid expense, bill receivable, cash in hand, cash at bank and so on.
  3. Intangible assets – These are those which cannot be seen but they are of value to a company, goodwill, patent, trademarks are some of the items which can be considered as intangible.
  4.  Fictitious assets – These are those which are not actual and therefore they are of no value to a company, some examples of it are underwriting commission, preliminary expenditure and so on.

Above was a general classification in real life there are many ways in which one can classify assets because it depends on nature of use and also on firm or individual which is accounting for it.

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