Business assets span many categories, such as vehicles, real estate, computers, office furniture and other fixtures, and they are listed on the firm’s balance sheet as items of ownership, and most can be written off and either depreciated or expensed under section 179 in the year of purchase. Business assets are different from business expenses, which are simply deducted; likewise, long-term business assets, such as real estate, are different from current assets such as receivables.
BREAKING DOWN ‘Business Asset’
A business asset is a piece of property or equipment purchased exclusively or primarily for business use. There are many different categories of assets including current and non-current, short-term and long-term, operating and capitalized, and tangible and intangible. Business assets are itemized and valued on the balance sheet, which can be found in the company’s annual report. Business assets are listed on the balance sheet at historical cost and not market value.
Business Asset Types and Categories
The management of business assets is arguably one of the most important jobs of company management. As such, accounting for these assets is critical to business success. Assets are listed on the balance sheet in order of liquidity. Long-term or non-current assets are listed under current assets.