Asset - Examples and Definitions

Land

A long-term asset account that reports the cost of real property exclusive of the cost of any constructed assets on the property. Land usually appears as the first item under the balance sheet heading of Property, Plant and Equipment. Generally, land is not depreciated (losing value over time).

Land Improvements

A long-term asset which indicates the cost of the constructed improvements to land, such as driveways, walkways, lighting, and parking lots.

Buildings

Buildings is a non-current or long-term asset account which shows the cost of a building (excluding the cost of the land).

Equipment

Equipment is a non-current or long-term asset account which reports the cost of the equipment.

Petty Cash

A current asset account that represents an amount of cash for making small disbursements for postage due, supplies, etc.

Temporary Investments

A current asset account which contains the amount of investments that can and will be sold in the near future.

Cash

A current asset account which includes currency, coins, checking accounts, and undeposited checks received from customers.

Supplies

A current asset representing the cost of supplies on hand at a point in time. The account is usually listed on the balance sheet after the Inventory account.

Accounts Receivable

A current asset resulting from selling goods or services on credit (on account)

Prepaid Insurance

A current asset which indicates the cost of the insurance contract (premiums) that have been paid in advance. It represents the amount that has been paid but has not yet expired as of the balance sheet date.

Inventory

A current asset whose ending balance should report the cost of a merchandiser's products awaiting to be sold. The inventory of a manufacturer should report the cost of its raw materials, work-in-process, and finished goods. The cost of inventory should include all costs necessary to acquire the items and to get them ready for sale.

Goodwill

Goodwill is a long-term asset categorized as an intangible asset--not a physical thing or something you can touch. Goodwill arises when a company acquires another entire business.