Long-term assets or fixed assets, such as office premises or buildings and equipment, are essential long-term assets. Fixed assets comprise equipment, vehicles, machinery, and computers. These assets regularly have a service life of exceeding more than one year and are often more expensive for retail purchases.

Intangible assets are not all assets are real things. Some assets, such as goodwill, equity investments, patents, and websites, cannot be touched. However, these intellectual assets can be considerable.

Long-term investments are investments that are not anticipated to be realized in the next 12 months (sold or otherwise converted to cash). These comprise investments in the company’s common stock, the purchase of bonds publicized by the company, and so on.

• Cash– It comprises any form of currency that can be easily traded, as well as coins, checks, money orders, and bank account balances.

• Accounts receivable– Accounts receivable is an asset that sells goods or services on credit to a person. Accounts receivable are the buyer’s compliance to make payments to the seller by the terms of sale.

• Bills receivable– Bills are a written promise to pay the money. A company holding a note signed by another entity records the asset as a note. Unlike accounts receivable, a receivable can be a long-term asset with a set interest rate.

• Prepaid expenses– Prepaid expenses, like prepaid insurance, are advanced expenses that have paid. For example, accounts receivable, prepaid expenses and, accrual income are assets because they required for assets. If the six-month insurance paid in advance, the company has the right to insurance (service) for the next six months.

• Inventory– Inventory comprises the goods includes goods owned by the company that sells these goods. For example, a car will be a car dealership in stock because it is in the business of selling cars. A car wouldn’t be considered a pizza shop’s inventory looking for delivery vans that sell it.

• Supply– Many companies have sundry assets, is the entire product production is too small and cheap capital — these assets consumed when they are purchased.

The company lists all the assets on its balance sheet. When a person thinks of an asset, he usually thinks of tangible assets; not all assets are tangible. For a relevant example, trademarks and patents are not examples of intangible assets. Assets always recorded on the balance sheet in the order of their liquidity.

Assets can be classified into two:

1. Current Assets

The current asset is one that has a year or less of service life. Prepaid Expenses and Supplies ( already paid for or a liability incurred) are included because they will normally be used or consumed within the operating cycle. Current assets anticipated to be spent or converted to cash during the year listed at the top. Cash, short-term investments, and inventories are examples of liquid assets.

2. Non- Current Assets

The useful life of non-current assets is more than one year. These are the assets that do not meet the criteria to be classified as current. Non- current assets have divided into three types such as intangible assets, long-term assets such as property, plant, and equipment, and it also includes long-term investment.

Assets identified as resources owned or managed by the company, which is expected to provide future economic benefits. That is an asset is a project that a company uses to produce future revenue or maintain its business.

Asset accounts usually have a debit balance. Its means that entries shaped on the left (such as a debit entry for an asset T-account) raise the asset account balance, while journal entries developed on the right (such as a credit entry) shorten the account balance.