What is asset

Assets are all products,goods or services which individual or the business owns.

In business,assets are classified into short term assets and long term assets.

Short term assets can be cash quickly and they include hard cash,business savings and business stocks which can be changed into cash quickly once the stocks have been sold.These assets also include all the goods and services which the business has sold on credit.

Long term assets are those assets which can not be cashed quickly,they take time inorder to convert the assets into cash.These assets include business equipments and machines,business motor vehicles,business shares and business buildings incase the business owns the building's they are doing the buss.

During financial difficulties the business can either sell or lease the assets to finance itself or the business can use the assets as security to access credit facilities such as loans from financial institution's.

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