What Does Asset Mean In Accounting?
Here we will study What is an Asset in Accounting or What does Asset mean in Accounting World? You may also be interested in “ What are Liabilities ” Assets Accounting Definition Assets are those resources or possession owned by the business that provide probable future benefits to the business in the coming Accounting Period. In Asset, the benefit will be get in near future. Assets are obtained by the business from two main sources. One is Liabilities and other one is Owner’s Equity or Simply Equity also called Capital in case of Sole Proprietorship. Assets Examples include Cash, Accounts Receivable , Inventory or Closing Stock , Plant And Machinery, Office Equipment, Furniture & Plant, Goodwill, Patents, Franchise etc. Rules of Debit And Credit For Assets The Natural Balance or Favourable Balance for Assets is Debit balance while Negative or Unfavourable Balance is Credit. When an Asset increases we deb...