6.17What are assets?
1What is it?
Assets are things the company owns that have value: cash, buildings, machines, inventory, money owed by customers, patents.
2Why does it exist?
Assets are what the company uses to earn money.
3Stock market example
Current assets turn into cash within a year (cash, receivables, inventory). Non-current assets last longer (factories, land, software, brands).
4Quick revision
- Assets = things owned with value.
- Current vs non-current.
5Knowledge check
Q1. Is a factory a current asset?Show answer
No, non-current.
Q2. Is money customers owe an asset?Show answer
Yes, receivables.
Q3. Why do assets matter?Show answer
They generate revenue.