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Tushar Aher Patil

Stealth • 10d

Day 5 About Basic Finance and Accounting Concepts Here's Some New Concepts An asset is anything that an individual, company, or government owns that holds value and can generate future benefits. Assets are essential components in financial accounting and analysis, as they represent resources that can help an entity achieve its goals. They are generally classified into several categories based on their nature and liquidity (how quickly they can be converted into cash). Types of Assets 1. Current Assets Assets that are expected to be converted into cash or used up within a year. Examples: cash, cash equivalents (like treasury bills), accounts receivable (money owed by customers), inventory (goods for sale), and short-term investments. 2. Non-Current Assets (Fixed Assets) Long-term assets used for more than one year, often for business operations. Examples: property, plant, and equipment (like buildings and machinery), land, and long-term investments.

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