Asset
In one sentenceA resource controlled by the business as a result of past events and expected to bring it future economic benefits, such as cash, inventory and equipment.
Simply put
An asset is something the business controls that benefits it in the future: cash to pay with, goods to sell, a car to deliver orders with, or an amount owed to it by a customer.
Assets are divided into current assets that turn into cash within a year and non-current assets that stay for years. They all appear in the statement of financial position; an asset increases with a debit and decreases with a credit.
Worked example
At year-end a pharmacy has cash, goods and furniture.
Cash on hand and in the bank40,000 SAR
Medicine inventory150,000 SAR
Furniture and shelving after depreciation60,000 SAR
Total assets (40,000 + 150,000 + 60,000)250,000 SAR
Don't confuse it with
ExpenseAn expense is a benefit used up in the period, while an asset's benefit remains for the future.