• It can be defined as any tangible good or intangible item legally owned by the business that has a positive monetary value.
• It can be categorized into three groups such as:

a) Fixed assets:

• They are impossible to convert into cash to meet any current obligations such as land, buildings and land improvements.

b) Working assets:

• These are more liquid than fixed assets and normally used up during the life of the business such as farm machinery and equipment, breeding and milking livestock.

c) Current assets:

• They are more liquid assets and more consumable in a year such as seeds, fertilizers, cash on hand,etc.