To begin, an asset can be thought of as any of a company’s resources that can be turned into cash if and when that becomes necessary. Anything that can be sold for more money in the future is considered an asset. Both tangible and intangible assets are considered to be forms of property.
These are assets that can be touched and felt, such as cash, inventory, investments, buildings, lands, vehicles, and other pieces of equipment. Buildings, land, vehicles, and equipment, to name a few examples, all contribute to the value of your company but are difficult or impossible to turn into cash.
These things do not exist in the real world. Examples include things like accounts receivable and prepaid expenses (stocks), as well as patents, copyrights, trademarks, and so on. These contribute to the overall value of the company by making it easier for it to bring in additional revenue in the years to come.
The reduction of expenses, generation of cash flow, and expansion of sales are all benefits that can be gained from assets. The balance sheet of the company contains an accurate reflection of these factors.