![]() Intangible assets include such things as trademarks, patents, internet domain names, brand names, and even good will. Intangible assets are things that do not have a clear face value, and must be reassessed from time to time to determine their current value. Intangible assets are the opposite of tangible assets, as they are not physical in nature. These include such items as vehicles, machinery, computers, and furnishings. Notes Receivable – includes promissory notes, and other promises to payįixed, or long term, assets are items that have a long term value, and usually are not things a company or individual wants to sell, as they are required to do business.Accounts Receivable – refers to money due to be paid for items sold to a customer, or services rendered.Supplies – items used in carrying on the company’s business, such as pepperoni and pizza boxes for a pizza restaurant.Inventory – goods owned by a company in the business of selling those goods.Prepaid Expenses – includes prepaid insurance policies, prepaid travel, and the like.Cash – includes bank accounts, checks, money orders, and coins.Tangible assets are either current or fixed (also referred to as “long term”).Ĭurrent assets are items that have a short useful life, usually less than one year. Tangible assets come with a risk of becoming damaged, lost, or stolen due to the acts of another person, or an act of nature. Tangible assets are physical in nature, and have a material value on the public market that can be easily ascertained. Assets come in a variety of forms, including tangible and intangible assets. An individual or entity can be taxed on the value of its assets, and the assets left by someone who dies is referred to as his “estate.” Assets in such an estate may be used to pay debts left by the decedent, or distributed to beneficiaries as specified in the decedent’s will or trust. Other Types of AssetsĪssets are the things owned by individuals or entities that have, or are expected to have, economic value. Since the loss occurred, the rental house cannot be considered a liquid asset. For example, if Evan sells his rental house to obtain quick cash when a major emergency arises, he is likely to receive less than the true value of the property, which results in a loss. Additionally, ownership of such assets as real property cannot be transferred quickly. This is because the value of such items is likely to fluctuate greatly, especially if they are sold quickly. Examples of liquid assets include:Īssets not considered to be liquid include real estate, venture capital investments, and collectibles. Cash and savings accounts are the most common type of liquid asset owned by people and businesses alike, but other assets considered to be liquid, are those that are established on the market and can be transferred between owners easily.
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