Assets can be defined as objects or entities, whether tangible or intangible, that the company owns that have economic value.
Tangible assets are physical entities that the business owns such as land, buildings, vehicles, equipment, and inventory. Intangible assets are things that represent money or value; things such as Accounts Receivables, patents, contracts, and certificates of deposit (CDs)..
Assets are also grouped according to either their life span or liquidity - the speed at which they can be converted into cash. Current assets are items that are completely consumed, sold, or converted into cash in 12 months or less. Fixed assets are tangible assets with a life span of at least one year and usually longer. Fixed assets might include machinery, buildings, and vehicles. Fixed assets are typically not very liquid. And the costs of more expensive fixed assets such as machinery and computer systems are not expensed, but depreciated, or expensed or "written off," over a number of years according to one of several depreciation schedules.