Types of assets

The term active is used in the area of ​​finance and economics. Similarly, it is used as an adjective that can be used in various contexts.

Within the substantive function, an asset is known as a right or asset that has a financial valuation, which is under the possession of a subject or an institution. The assets are recorded in the accounting balances, generating the credit.

The word active, on the other hand, can be used as an adjective. In the general scope, something active is something that is executed or that is in a state to act. Using this notion, the word can be used in various ways.


  • 1 The types of assets
    • 1.1 Current assets
    • 1.2 Financial asset
    • 1.3 Tangible asset
    • 1.4 Functional asset
    • 1.5 Intangible asset
    • 1.6 Fixed assets

The types of assets

Current active

A current asset is known as the type of asset that is capable of being transformed into cash in a period of time of less than one year.

This class of asset is fundamental in any company, because with these the institution can act, get merchandise, pay a payroll, obtain fixed assets, and pay for liabilities.

Financial asset

The financial asset is a financial tool that gives the buyer the legality of obtaining future income from a seller, this means that it is a right over the true assets of the issuer and the money they produce. They can be generated by any economic organization, such as the government, a company, among others.

Unlike other types of assets, financial assets generally do not have a physical estimate. The buyer of this asset class has a right and the seller has a responsibility or commitment.

Tangible asset

Tangible assets have a physical format, that is, they are material elements that can be felt and observed.

Tangible assets in the business area include both the machines used, the land, the non-current assets, the means of transport, the building, as well as the registry. The opposite of a tangible asset, it is an intangible asset.

The tangible asset, like the rest of the assets, must provide future economic results reasonably valued, and it is required that it be the product of an anticipated transaction.

Functional asset

The functional asset consists of the section of the asset that cooperates according to the goals and purposes of an organization, in making it.

Intangible asset

There are a large number of intangible assets such as brands, franchises, patents, among others.It consists of a type of asset that does not have a physical format, it is not something realistic and due to this, it is not possible to feel or observe it. It comes from the knowledge, capabilities and behavior of human beings and companies.

Fixed asset

Fixed assets are the assets that a company uses for a long time while developing the normal course of its operations and that symbolize the conglomerate of services that will be achieved in the future during the profitable life of a good obtained.

For a good to be admitted as a fixed asset of an institution, it needs to possess some qualities: to be tangible in a physical way, and its profitability must be extended for at least one year or a normal cycle of operations.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button