asset
AS-et
/ˈæsɛt/
A useful or valuable thing or person; in finance, an item of property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.
Assets can be tangible (e.g., property, equipment) or intangible (e.g., patents, goodwill). In personal finance, it often refers to anything you own that has monetary value.
The story behind the word. The word 'asset' comes from the Old French 'asez,' meaning 'enough.' This term was used in legal contexts to refer to sufficient property to meet one's debts or obligations. Over time, it evolved to simply mean any item of value or property owned, retaining its core sense of something that can 'suffice' or be used.
Word relationships
- property: Often refers specifically to real estate or physical possessions.
- resource: Can be broader, including non-financial things like time or skills.
- liability: A financial obligation or debt owed to another party.
Commonly confused with
- equity: 'Equity' is a type of asset representing ownership, specifically in a company (stocks), or the value of an asset after deducting liabilities (home equity). 'Asset' is the broader category.
Word family
- asset-rich (adjective): Having a lot of assets.
- asset-light (adjective): Having few physical assets, often relying on intangible assets.
Collocations
- financial asset
- tangible asset
- intangible asset
- liquid asset
- fixed asset
- current asset
- digital asset
Idioms & expressions
- frozen assets
Example sentences
- "The company's largest asset was its intellectual property, which included several groundbreaking patents." Real estate is often considered a significant long-term asset.
- "For many retirees, their home equity represents their most substantial asset." In a divorce settlement, all marital assets are typically divided.
Memory hook
An 'ASSET' is 'AS' good 'ET' (as it) gets for financial security. ASSET: 'as it' is valuable.
When not to use
Do not use 'asset' to describe something that is a liability or a cost without any offsetting value.
Fun facts
- In accounting, assets are typically listed on a company's balance sheet.
- The concept of 'human capital' refers to the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.
Related words
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