Define: Asset Protection

Business, Legal & Accounting Glossary

Definition: Asset Protection



Advertisement



Full Definition of Asset Protection


In business and accounting, an asset is anything owned, whether in possession or by right to take possession, by a person or a group acting together, e.g. a company, the value of which can be expressed in monetary terms. An asset is listed on the balance sheet. It has a normal balance of debit.

Assets may be classified in many ways. The principal distinction normally made for business purposes is between:

Other business subdivisions include intangible assets, that is, those assets which, though not visible, add to the earning power of the business, e.g. goodwill, patents, copyrights, etc. (also called invisible assets); liquid assets, which are a subdivision of current assets and also categories labelled trade investments, quoted investments, etc.

In the balance sheet of a company, certain divisions are required by law, which varies from country to country.

Current assets

Those are assets continually turned over in the course of a business during normal business activity. Examples: debtors, stock, cash and work in progress. The phrase net current assets (also called working capital) is often used and refers to the total of current assets less the total of current liabilities.

Fixed assets

Assets which are purchases for continued and long-term use in earning profit in a business. Examples: land, buildings, machinery, etc. They are written off against profits over their anticipated life by charging an annual amount calculated so as to eliminate the original cost (historical cost), less scrap value, over that period.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/asset-protection/
Modern Language Association (MLA):
Asset Protection. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 05, 2020 https://payrollheaven.com/define/asset-protection/.
Chicago Manual of Style (CMS):
Asset Protection. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/asset-protection/ (accessed: April 05, 2020).
American Psychological Association (APA):
Asset Protection. PayrollHeaven.com. Retrieved April 05, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/asset-protection/

Definition Sources


Definitions for Asset Protection are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th February, 2020