In the context of accounting, an asset is defined
as any item of economic value that a corporation owns, especially those
that can be converted to cash. Examples include land, equipment,
inventory and the like. Intangibles, such as patents, trademarks and goodwill (only recorded during times of acquisition) can also be quantified for the balance sheet.
These assets, as well as the liabilities and retained earnings on the
other side of the sheet, dominate corporate thought and action. In so
doing, however, companies overlook their most important assets, which
cannot be sold or easily measured. If corporations would focus on the
acquisition and development of these unconventional assets, the rest of the financials would take care of themselves.
Print to Page
Email to a Friend