Asset Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Asset, written in plain English, along with examples of how it is used.
What is Asset?
(n) Asset is a property, article or right owned by a person or legal entity, which can be separately identified and which has a monetary value. Eg. Amount due from debtors 2) Furniture 3) Landed property
History and Meaning of Asset
The term "asset" comes from the medieval Latin "assetum", which referred to property or possessions. In modern times, an asset is defined as a property, item, or right that is owned by an individual or organization, that has a monetary value, and can be traded or sold. Examples of assets may include stocks, bonds, real estate, or vehicles.
Examples of Asset
- A company's balance sheet will list all of its assets, which may include cash, inventory, equipment, and investments.
- An individual may have personal assets such as a car, house, or investment portfolio.
- In bankruptcy proceedings, the court may examine a debtor's assets to determine how to repay creditors.
- A trust may hold assets on behalf of beneficiaries, such as stocks or real estate.
- Intellectual property, such as patents or trademarks, can also be considered assets.
Legal Terms Similar to Asset
- Liability: a legal obligation to pay debts or other financial obligations
- Equity: ownership interest in property or a business
- Investment: the purchase of assets with the hope of generating future income or profit
- Property: anything that can be owned or possessed by an individual or organization