What Are Assets? Definition and Examples | MetLife (2024)

FAQs

What Are Assets? Definition and Examples | MetLife? ›

An asset is anything you own that holds monetary value. That means things like your house, your car, and your checking account funds are considered assets.

What Are Examples of Assets? Personal assets can include a home, land, financial securities, jewelry, artwork, gold and silver, or your checking account. Business assets can include such things as motor vehicles, buildings, machinery, equipment, cash, and accounts receivable.

Assets are things you own that you can sell for money. In accounting, an asset is any resource that a business owns or controls. It's anything that could be sold for money. The study of a balance sheet and assets and liabilities helps us to ascertain the equity value.

Three of the main types of asset classes are equities, fixed income, and cash and equivalents. For individual investors, these are more commonly referred to as stocks, bonds and cash. An investor's asset allocation, or mix of asset types, is the foundation of portfolio construction.

Assets are things you own that have value. Assets can include things like property, cash, investments, jewelry, art and collectibles. Liabilities are things that are owed, like debts. Liabilities can include things like student loans, auto loans, mortgages and credit card debt.

Your car is considered a consumer product, and consumer products can depreciate. A car is a depreciating asset that loses value over time but retains some worth. Because you can convert a vehicle to cash, it can be defined as an asset.

Your three greatest assets are your time, your mind, and your network. Each day your objective is to protect your time, grow your mind, and nurture your network.

If you have money in your checking account, it's considered an asset. If your account is empty or overdrawn, it's not considered an asset, but rather a liability.

Given the financial definitions of asset and liability, a home still falls into the asset category. Therefore, it's always important to think of your home and your mortgage as two separate entities (an asset and a liability, respectively). Finally, your house is your home.

Assets are categorized as either real, financial, or intangible. All assets can be said to be of economic value to a corporation or an individual. If it has a value that can be exchanged for cash, the item is considered an asset. Intangible assets are valuable property that is not physical in nature.

Is cash a real asset? ›

A real asset is an item that has value and is owned by an individual or organization. It can include cash, inventory, equipment, real estate, accounts receivable, and goodwill. Real assets are different from financial assets, which are intangible and can be easily traded in the market.

Generally, you should consider five broad asset classes when constructing your investment portfolio: cash, fixed-principal investments, debt, equity, and tangibles. Cash refers to the most liquid holdings in your portfolio.

Personal assets are things of present or future value owned by an individual or household. Common examples of personal assets include: Cash and cash equivalents, certificates of deposit, checking, savings, and money market accounts, physical cash, and Treasury bills.

Dividends. Dividends is not an asset account. This is a contra-equity account because it decreases total equity. It is recorded when the company declared and paid dividends for its stockholders. Equipment, inventory, and accounts receivable are assets.

Assets are things you own that have value. Your money in a savings or checking account is an asset. A car, home, business inventory, and land are also assets. Each program has different rules about what counts as an asset and the total value of your assets allowed to qualify for assistance.

While real estate is more lucrative over time than holding cash, it has more risk. On the other hand, holding onto money or putting it into something safe like a CD or savings account might earn smaller yields, but you have less chance of losing it altogether. Luckily, you don't need to choose just one place to invest!

Common examples of personal assets include: Cash and cash equivalents, certificates of deposit, checking, savings, and money market accounts, physical cash, and Treasury bills. Property or land and any structure that is permanently attached to it.

An asset is anything you own that adds financial value, as opposed to a liability, which is money you owe. Examples of personal assets include: Your home. Other property, such as a rental house or commercial property. Checking/savings account.