Technical definition
A present economic resource controlled by an entity as a result of past events.
How it works
Assets include cash, receivables, inventory, equipment and qualifying intangible resources. Recognition normally requires control, expected future benefit and sufficiently reliable measurement. Assets are current or non-current depending on their expected realization or use.
Everyday example
A machine bought for $30,000 is an asset because the company controls productive capacity expected to benefit future periods.
Common pitfall
Something can be valuable without qualifying as a recognized asset; internally developed reputation is a common example.