Asset Accounts : List and Explanation

Assets refer to resources owned and controlled by an entity.
Technically, an asset is defined as a "resource controlled by an entity as a result of past event and from which future economic benefits are expected to flow to the entity".

Current Assets

• 1. Cash and Cash Equivalents
  • Cash on Hand - consists of un-deposited collections
  • Cash in Bank - made up of bank accounts that are unrestricted as to withdrawal
  • Short-term cash funds such as Petty Cash Fund, Payroll Fund, Tax Fund, etc.
  • Cash Equivalents are short-term investments with very near maturity dates making them assets that are "as good as cash".
• 2. Trading Securities or "Financial Assets at Fair Value"
  • Trading Securities are investments in stocks that are held with the purpose of trading (speculative investments)
• 3. Trade and Other Receivables
  • Accounts Receivable - receivables from customers arising from rendering of services or sale of goods
  • Notes Receivable - receivables from customers which are backed up by promissory notes
  • Other receivables representing claims from other parties such as: Rent Receivable, Interest Receivable, Dividend Receivable, etc.
  • Allowance for Bad Debts - a contra-asset account deducted from Accounts Receivable. It represents the estimated uncollectible amount of the receivable.
• 4. Inventories
  • Inventories are assets that are held for sale in the normal operations of the business. A service business normally has no inventory account.
  • Merchandising businesses normally maintain one inventory account – Merchandise Inventory.
  • Manufacturing businesses have several inventories: Raw Materials Inventory, Work in Process Inventory, Finished Goods Inventory, and Factory Supplies Inventory.
• 5. Prepaid Expenses or Prepayments
  • Prepayments consists of costs already paid but are yet to be used or incurred. Common prepaid expense accounts include: Office Supplies, Service Supplies, Prepaid Rent, and Prepaid Insurance.

Non-Current Assets

• 1. Property, Plant, and Equipment (PPE) also known as Fixed Assets
  • PPE includes tangible assets that are expected to be used for more than one year. PPE accounts include: Land, Building, Machinery, Service Equipment, Computer Equipment, Delivery Equipment, Furniture and Fixtures, Leasehold Improvements, etc.
  • Take note that land that is not used by the business in its operations but is rather held for appreciation is not part of PPE but of investments.
  • Accumulated Depreciation - a contra-asset account deducted from the related PPE account. It represents the decrease in value of the asset due to continuous use, passage of time, wear & tear, and obsolescence.
• 2. Long-Term Investments
  • Investment in Long-Term Bonds, Investment in Associate, Investment in Subsidiary, Investment Property, Long-Term Funds; these are investments that are intended to be held for more than one year.
• 3. Intangibles
  • An intangible has no physical form but from which benefits can be derived and its cost can be measured reliably.
  • Intangibles include Patent for inventions, Copyright for authorship, compositions and other literary works,Trademark, Franchise, Lease Rights, and Goodwill.
• 4. Other Non-Current Assets
  • Assets which cannot be classified under the usual non-current asset categories
  • Includes: Advances to Officers, Directors, and Employees not collectible within one year, Cash in Closed Banks, and Abandoned or Idle Property

There you have a list of asset accounts. Take note that different companies may use different (although similar) sets of account titles. It will depend upon the company's business and industry, and what specific accounts were adopted in its chart of accounts.