An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit. Assets are reported on a company’s balance sheet and are bought or created to increase a firm’s value by generating cash flow, reduce expenses, or improve sales. If an asset is created by the operating activities of the reporting entity, its cost is defined economically by the total expenses capitalised in the tangible or intangible asset Register. Distinctions are made for accounting purposes between current and fixed, operating, and non-operating assets.

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