Investment Glossary

Something with economic value that an individual, corporation or country owns or controls, such as cash, securities, inventory, office equipment, real estate, and other property. On a balance sheet, assets are equal to the sum of liabilities, common stock, preferred stock, and retained earnings. From an accounting perspective, assets are divided into the following categories: current assets (e.g., cash), long-term assets (e.g., real estate, plant), prepaid and deferred assets (e.g., future costs such as insurance, rent, interest), and intangible assets (e.g., patents, goodwill).