Asset

Assets represent everything a company owns that has value, categorized by their liquidity and duration of use.
Current assets include cash, accounts receivable, inventory, and prepaid expenses, all expected to be converted to cash or used within a year.
Non-current assets encompass long-term investments, property, plant, and equipment (PP&E), intangible assets like patents or goodwill, and other long-term holdings not meant for immediate conversion to cash.
These entries not only show what the company controls but also provide insights into its operational capacity, investment strategy, and potential for future cash flows, all recorded generally at cost or adjusted fair value, and balanced against liabilities and equity on the sheet.