Assets are any items that an individual or a business owns that have the potential to increase in value.
Asset definition is difficult because "any item" is a broad category that includes a plethora of items that meet the definition of a financial asset.
Personal financial assets, for example, include cash, investments, jewellery, collectibles, homes and automobiles, and real estate, among other things. Businesses, too, have assets. Assets include buildings, property, bank accounts and investments, inventory, and intellectual property.
It is also critical to understand that income is not the same as assets. In general, income is money that comes into an individual or business account. In contrast, an asset is either cash or property that already exists and is owned by an individual or business.

Assets are resources owned by individuals, businesses, or governments that have economic value and can generate future benefits. They come in various forms, including physical assets like property, machinery, and inventory, and intangible assets like patents, trademarks, and goodwill. Financial assets such as stocks, bonds, and cash are also common. Assets are classified on balance sheets as current (short-term) or non-current (long-term) based on their liquidity and the time frame within which they are expected to be converted to cash or used. Effective management and valuation of assets are crucial for financial health, enabling entities to leverage them for investment, operational efficiency, and strategic growth.