ASSETS

Assets are things of value at the command of business.They fetch cash or other benefits in future.Land and building,plant&machinery, furniture&fixtures,stock,cash in hand and cash at bank are some of the examples of assets.Assets can be classified into (a) current assets,(b) fixed assets.
(a)CURRENT ASSETS:-Assets which are held for a short period are known as current assets or floating assets.Such assets acquired with the intention of converting them into cash or consuming them during the operating cycle of business.Cash in hand and at bank,debtors,bills receivable,and stock are some of the examples of current assets.
(b)FIXED ASSETS:-Assets which are acquired for a relatively longer period are known as fixed assets.Land&building and plant and machinery are some examples of  fixed assets.Fixed assets are brought into the following categories.
    (1)TANGIBLE ASSETS
                   Assets having definite shape and material existence are known as tangible assets.Land&building,furniture and fixtures,plant&machinery are some examples.
    (2)INTANGIBLE ASSETS
                  Assets having no shape and physical existence are known as intangible assets.Goodwill,copyright and patent are examples.
    (3)WASTING ASSETS
                 Assets which get exhausted to the extent of extraction are called wasting assets.Natural resources like mines,quarries and oil fields are examples.
    (4)FICTITIOUS ASSETS
                Assets which have no real value but are shown in the books of accounts only are called fictitious assets.Preliminary expenses,discount on issue of shares and debentures and under writing commission are some examples of fictitious assets.