Learn in the textbookThe Big Picture of Financial Statements
DefinitionAssets (資産) are the property a company holds and can put to use in its business, such as cash, goods, and buildings.
ExplanationAssets are recorded on the debit (left) side of the balance sheet and show the forms in which raised funds are held, in other words how the funds are used. For example, the amount owed for goods sold on the promise of later payment (accounts receivable) is also an asset. The sum of all assets is called total assets, and it serves as the denominator in financial indicators such as the equity ratio.
AnalogyIn household terms, these are what you own right now, such as savings, a house, a car, and money you lent a friend and expect to get back.