Assets are properties that have value and can be traded or used to write off a debt. A single asset can be any form of resource with economic value. It can be owned by a natural person, a legal entity such as a company, organization, union, association, and the likes. In some cases, the owner may have a specific asset attested to so that it can be transferred or sold later. When this happens, an asset certificate is issued to the said owner.
There are many different types of assets: tangible assets and intangible assets, fixed assets, financial assets, and current assets. Tangible assets are any physical asset, including cash and property, equipment and etc.,where as intangible assets are not physical; they include patents, copyrights and so on. For an individual, royalty is also an intangible asset. Current assets include cash and other assets that can turn into cash. Fixed assets are difficult to convert into cash, such as commercial property, factories, warehouses, equipment and etc.
Assets are shown on a company’s financial statement and they are one of the most important yardstick against which the company is evaluated, allowing investors,and shareholders to decide whether to buy in more shares or to sell their shares. At times,a business or company may take out loans from a bank or another company. In order to convince the borrower that they will be able to pay back the money, a company may seek to have its assets certified with a third-party; having an asset certificate allows them to borrow money under more favorable terms, such as lower interest rates.