Types of Assets

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What are current assets?

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Current assets are highly liquid assets that can be quickly sold and converted into currency, including cash, accounts receivable, inventory, and prepaid expenses.

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What are fixed assets?

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Fixed assets, also known as hard assets or long-term assets, take a long time to earn cash value and are generally low-liquidity, including buildings, land, and furniture.

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What are tangible assets?

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Tangible assets are real property that is physically tangible, such as inventory, real estate, machinery, cash, or furniture.

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What are intangible assets?

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Intangible assets are items that exist theoretically rather than physically, including permits, intellectual property, patents, brand reputation, and trademarks.

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What are operating assets?

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Operating assets are assets that generate revenue through day-to-day business operations, such as copyrights, licenses, inventory, or machinery.

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What are non-operating assets?

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Non-operating assets are business-owned items that generate revenue but are not needed for everyday operations, such as vacant land or short-term investments.