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A

Asset

Definition

Anything of value a company owns or controls that provides future economic benefit. Examples: cash, inventory, buildings, accounts receivable, patents. Assets go on the left side of the balance sheet.

Related Terms

Accounting Equation

The foundation of all accounting: Assets = Liabilities + Equity. Think of it as a balance scale. The left side (what you own) must always equal the right side (what you owe plus what owners have invested).

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