Types of Assets

Types of Assets Two ways of categorisation:-

1. Physical Structure wise

2. Time Factor wise

As per Physical structure assets may be a) Tangible or b) Intangible

Tangible Assets:-which can be seen by naked eyes & can be touched(in short have some physical existence). Eg. Land and Building, Computers< Motor Vehicles, Stock etc.

Intangible Assets:- We can't touch but still has its monetary value. For eg.:-Copyright, trademark, Patent, Geographical location Rights etc.

As per Time factor assets may be :- a) Non-Current Assets or b) Current Assets.

Current Assets :- a) Those which are meant for sale

b)Purpose:-Purpose to hold these kind of assets is to make these assets converted into cash within an accounting year. Examples:- cash, debtors, stock, B/R etc.

Non Current Assets or Fixed Assets :- a) which are held for the continuous use into the business.

b) Purpose :- By the help of these assets we will produce goods and services.

c) these are not meant for resale purpose.

Examples :- Land and Building, Computer, Plant and Machinery Vehicles etc.

By the end of this lecture you will be able to understand the following topics:- 1.)Difference between tangible and intangible assets. 2.)Difference between Current and Non-current assets. 3.)Trading activity and non trading activity.