current asset

In accounting, an asset is a resource with economic value that a company owns or controls. Assets can be tangible, like property, or intangible, like intellectual property. They represent what a company owns and are a key component of a company's balance sheet, which also includes liabilities and owners' equity.12

Assets are typically categorized into current assets and noncurrent assets. Current assets are those expected to be converted into cash or consumed within one year or the company's operating cycle. This category includes cash, accounts receivable, and inventories. Noncurrent assets include fixed assets like land and buildings, as well as intangible assets. The fundamental accounting equation states that total assets equal total liabilities plus owners' equity.132