What does asset mean?

Pronunciation

/ˈæsɛt/ 🔊

Part of Speech

Noun

Definition

A valuable item, property, or quality that an individual, business, or organization possesses, which can provide a benefit, advantage, or profit.

Examples

• The company’s assets include cash, inventory, and equipment.
• Her strong communication skills are a valuable asset in the workplace.

Synonyms

• Resource
• Advantage
• Benefit

Antonyms

• Liability
• Debt

Additional Information

Assets can be tangible, such as physical property, or intangible, like skills or intellectual property. They are often used to generate income, reduce expenses, or provide a competitive advantage. In business, assets are typically classified into two categories: current assets, which can be converted into cash within a year, and non-current assets, which are long-term investments.

Assets play a crucial role in financial analysis and decision-making. They are used to calculate a company’s net worth, profitability, and liquidity. In personal finance, understanding the concept of assets is essential for creating a budget, managing debt, and achieving long-term financial goals.

Etymology

The word “asset” comes from the Old French “asset,” meaning “enough” or “sufficient,” which is derived from the Latin “asse,” meaning “to be sufficient” or “to be enough.”

Usage Notes

When using the term “asset,” it’s essential to consider the context in which it is applied. In business, assets are typically financial in nature, whereas in personal development, assets can refer to skills, habits, or character traits.

Cultural References

The concept of assets has been depicted in various films, such as “The Wolf of Wall Street” and “Margin Call,” which highlight the importance of assets in the financial industry.

Idiomatic Expressions or Phrases

• Asset allocation
• Asset management
• Asset-based lending

Related Words or Phrases

• Liability
• Equity
• Net worth

Collocations

• Asset management company
• Asset-based lending model
• Asset allocation strategy

Frequency of Use

The term “asset” is commonly used in financial and business contexts, with a frequency of use increasing in recent years due to the growing importance of asset management and financial literacy.

Common Misspellings

• Assest
• Assit
• Asst