assets

/aesets/ Property of all kinds, real and personal, tangible and intangible, including, inter alia, for certain purposes, patents and causes of action which belong to any person including a corporation and the estate of a decedent. The entire property of a person, association, corporation, or estate that is applicable or subject to the payment of his or her or its debts.

See also dead asset

- marshalling assets

@ accrued assets

Assets arising from revenues earned but not yet due

@ assets entre mains

L. Fr. Assets in hand; assets in the hands of executors or administrators, applicable for the payment of debts

@ assets per descent

That portion of the ancestor's estate which descends to the heir, and which is sufficient to charge him, as far as it goes, with the specialty debts of his ancestors. Bankruptcy. The property or effects of debtor in bankruptcy proceedings available for payment of his debts.

@ capital assets

For income tax purposes, a capital asset is defined as all property held by a taxpayer (e.g. house, car, stocks, bonds), except for certain assets listed in I.R.C. No. 1221.

Under the tax laws however, a given asset may be treated as a capital asset for one purpose, and as an ordinary asset for another.

Broadly speaking, all assets are capital except those specifically excluded by Internal Revenue Code.

Major categories of non-capital assets include: property held for resale in the normal course of business (i.e. inventory), trade accounts and notes receivable, depreciable property and real estate used in a trade or business (i.e. I.R.C. "No. 1231 assets"). I.R.C. No. 1221.

See also assets

@ commercial assets

The aggregate of available property, stock in trade, cash, etc., belonging to a merchant or mercantile company.

@ current assets

Assets readily convertible into cash, e.g. marketable securities, notes, inventories, accounts receivable.

+

Any property that will be or could be converted into cash in the normal operation of a business or at an earlier date, usually within one year. Short-term assets; e.g. cash, accounts receivable, inventory

See also quick assets.

@ equitable assets

All assets which are chargeable with the payment of debts or legacies in equity, and which do not fall under the description of legal assets. Those portions of the property which by the ordinary rules of law are exempt from debts, but which the testator has voluntarily charged as assets, or which, being non-existent at law, have been created in equity. They are so called because they can be reached only by the aid and instrumentality of a court of equity, and because their distribution is governed by a different rule from that which governs the distribution of legal assets.

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- fixed assets

@ frozen assets

Assets which are difficult to convert into cash (e.g. real estate for which there is no market); also, assets which cannot be used because of legal restriction.

+ frozen assets

Those assets of a business which cannot be readily sold without injuring the capital structure of the business in contrast to liquid assets which are readily convertible into cash

@ intangible assets

Assets lacking physical existence; e.g. patents, trademarks, organization costs, goodwill.

@ liquid assets

Cash, or assets readily convertible to cash

See also current assets.

@ net assets

Excess of assets over liabilities.

+ net assets

A term used in accounting which is arrived at by subtracting a company's total liabilities from total assets. Commonwealth v. Union Trust Co. of Pittsburgh, 345 Pa. 298, 27 A.2d 15, 17.

See net worth

@ net operating assets

The excess of cash and other assets which will be converted into cash in near future through normal operation over current liabilities.

+ net operating assets

The assets, net of depreciation and bad debts, employed in the ordinary course of business. Hence excludes investments in stocks and bonds owned by a manufacturing company, for example

@ nominal assets

Assets whose value is difficult to determine, e.g. a judgment or claim; also, book value of asset in contrast to actual value.

@ personal assets

Chattels, money, and other personal property belonging to a bankrupt, insolvent, or decedent estate, which go to the assignee or executor.

See also personal effects.

@ probate assets

Property of a decedent available for the payment of debts and legacies. The estate coming to the heir or personal representative which is chargeable, in law or equity, with the obligations which such heir or representative is required, in his representative capacity, to discharge.

@ quick assets

Accounting term used to describe cash and receivables, including notes and sometimes marketable securities, which will be converted into cash as part of normal operations.

+ quick assets

Liquid assets such as cash, marketable securities and accounts receivable which can be converted into cash without delay

See also current assets.

@ real assets

Land and real estate.

@ wasting assets

Assets exhausted through use or loss of value; e.g. patents, oil wells, coal deposits

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