Definitions 
Although there are several, one widely accepted definition of an asset is anything from which future financial benefits are likely to be received.
Examples of assets are: properties, bonds, stocks and shares, cash, etc…
Three Essential Carecteristics of Assets
- They embody a future benefit that involves a capacity, singly or in combination with other assets, in the case of profit oriented enterprises, to contribute directly or indirectly to future net cash flows, and, in the case of not-for-profit organizations, to provide services;
- The entity can control access to the benefit; and,
- The transaction or event giving rise to the entity’s right to, or control of, the benefit has already occurred.
Assets and the funddamental accounting Equation
The following equaltion is, as the name suggests, the basis of accounting. As you will see assets form an essential part of the equation:
Assets = Equity + Liabilities
