Assets are economic resources Of an individual or organisation that may be usefully expressed in terms of money for eg. land, building, debtors etc. 

Assets may be classified into following categories: 

1. Tangible Assets: Tangible Assets are those assets which have physical existence. So they can be seen and touched eg. Furniture, Machinery etc. 

2. Intangible Assets: Assets which do hot have physical existence, so they can not be touched and seen eg., Goodwill. 

3. Fixed Assets: Assets which are purchased in business with a view to produce good or to provide services and they are not meant for resale eg. land, building etc. 

4. Current Assets: Assets which are likely to be converted into cash within one year, eg., Bills received, prepaid expenses etc. 

5. Liquid Assets: Liquid assets are those assets which can be converted into cash in a very short period. These include all current assets except stock and prepaid expenses. 

6. Fictitious Assets: These assets are neither tangible assets nor intangible assets. They are never realised in cash though future benefits can be taken from these assets, eg. Deferred Revenue Expenditure. 

7. Wasting Assets: This term is used for natural resources which are valuable but they are consumed during the process of use. eg., coal mine etc.