The accounting period used to refer to an economical resource, that will be possessed by the firm and anticipated to provide prospective advantages to its own operation, is advantage. Hunting on the balance sheet, resources are usually broken into two classes:
- Tangible Assets: possess a physical type, like a construction, property, or a piece of machines
- Intangible Assets: usually demand a legal claim, like a patent.
Assets = Liabilities Owner’s Equity
Assets usually are listed on the balance sheet at their historical cost less accumulated depreciation. This isn’t necessarily the value of which the resources is sold. The balance sheet will often offer a sub total for current resources, which is somewhat more liquid holdings which may be converted into cash at under 1-2 months.