1. Fixed Assets:

Fixed Assets are assets held on long term basis, such as land, buildings, machinery, plant, furniture, etc. These assets are used for the normal operations of the business.

2. Current Assets:

These are assets held on a short-term basis such as debtors, bills receivables, stock, cash in hand, cash at bank, etc. It is also known as “Floating asset.”

3. Fictitious Assets:

These are those assets, which do not have a physical form. They do not have any real value. Actually, they are not the real assets but they are called assets on legal and technical grounds. Examples are preliminary expenses, discount on issue of shares or debentures, etc.

4. Tangible Assets:

Assets having physical existence which can be seen, touched are known as tangible assets. These assets are land, building, plant, equipment, etc.

5. Intangible Assets:

These assets have no physical existence which cannot be touched, seen or felt. Examples are Goodwill, trademark, patent, copyright.

6. Wasting Assets:

Assets, whose value goes on declining with the passage of time, are known as wasting assets. Mines, oilwells, quarries are its examples.

7. Liquid Assets:

Liquid assets are those assets, which can be converted into cash at short notice. The examples of liquid assets are cash in hand, cash at bank, debtors, bills receivable, etc. Liquid assets = Current Assets – (Stock + Prepaid Expenses)