In our previous blog we understood equity as ownership of an asset.
In financial terms it is stated as Total assets - Total liabilities.
In this session we we understand what is an Asset and its types.
So we are now aware that goodwill of a company , trademarks , patents are the assets of the company as they are copyrights of the company. It is important to consider these assets also.
Mostly assets are classified according to the running of the business.
A manufacturing company's fixed assets could be machinery and buildings where as furniture, books could be an expenditure/expense where as for an educational institutes furniture and books are asset.