Items Included in the Assets Side of Balance Sheet
Fixed Assets: Those assets which are acquired and held permanently for a long time in the business are fixed assets. A fixed asset is not purchased with the intent of immediate resale, but rather for productive use within the entity. Example: Buildings, Land, Machinery, Vehicles etc.
Current Assets: Those assets which cannot be put to constant uses and intended for resale or which in the ordinary course of business will be converted into other assets are current assets. A current asset is an item on an entity’s balance sheet that is either cash, a cash equivalent, or which can be converted into cash within one year. Examples of current assets are Cash, including foreign currency, Investments, Accounts receivable, Inventory etc.
Intangible Assets: Intangible assets are those assets which cannot be touched, seen and have no volume but have value. These assets are generally recognized as part of an acquisition, where the acquirer is allowed to assign some portion of the purchase price to acquired intangible assets. Example: Marketing-related intangible assets (Trademarks, Newspaper mastheads, Internet domain names etc.Customer-related intangible assets (Customer lists, Order backlog, Customer relationships etc.
Wasting Assets: Those assets which are depicted gradually or exhausted in the process of earning income are known as wasting assets. The depreciation period is intended to match the same time period over which the decline in valuation occurs. Examples of wasting assets are computer equipment, vehicles, and furniture.