1. Assets: All Valuable items owned by the business for its smooth running are called assets. OR Anything of value owned by the business or to be received by the proprietor is called an asset. Assets can be divided into the following categories: · Fixed assets: Those assets, which are acquired for a long time and help in smooth running of the business. For example Plant and Machinery, Furniture, Land and Building, Vehicles etc. · Current assets: Those assets, which are purchased for the purpose of selling or use in production of other assets are called current assets. These can be easily converted into cash. E.g. Bank, Stock etc. · Tangible assets: Those assets, which can be seen or touched, are called tangible assets. E.g. Building, Machinery. · Intangible assets: Those assets, which cannot be seen or touched, are called Intangible assets. E.g. Goodwill, Trademarks etc. · Fictitious assets: Assets, which are not visible by our naked eye and have zero market value, are known as fictitious assets E.g. Advertising expenses, Share Issue expenses. · Wasting assets: Assets which are created by nature and whose value falls as we use them more and more are known as wasting assets. E.g. Coal mines, Gold mines, Oil fields.