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Assetsare economic resources owned or controlled by a business or an individu...

Assetsare economic resources owned or controlled by a business or an individual that have future economic benefits. They are generally classified into two broad categories:current assets and non-current assets.Current AssetsCurrent assets are those assets that are expected to be converted into cash or used in the production of cash within a year. These assets are primarily used for day-to-day operations of the business. Some examples of current assets are:Cash and Cash EquivalentsThis includes physical cash on hand, as well as investments that are easily convertible into cash, such as bank deposits and marketable securitiesAccounts ReceivableMoney owed to the business by its customers for goods or services sold on creditInventoryRaw materials, work-in-progress, and finished goods held for salePrepaid ExpensesExpenses paid in advance, such as rent or insurance, that will be used up in the futureNon-Current AssetsNon-current assets, on the other hand, are those assets that are not expected to be converted into cash or used in the production of cash within a year. These assets are typically used for long-term operations and investments. Some examples of non-current assets are:PropertyPlant, and Equipment (PP&E): Tangible assets used in the production of goods or services, such as factories, machines, and office buildingsIntangible AssetsAssets that lack physical substance but have value, such as patents, trademarks, and copyrightsLong-Term InvestmentsInvestments held for periods longer than one year, such as stocks, bonds, or real estate investmentsNatural ResourcesResources such as oil, gas, and minerals that are extracted and used for economic gainAssets play a crucial role in the financial health of a business as they contribute to the generation of revenue and profits. Proper management and valuation of assets are essential for making informed business decisions and maintaining financial stability.