Account Information

Financial Statement Statement of Financial Position
Normal Balance Debit

Definition

Represents all economic resources owned by the company

Related Accounts

📐 IFRS vs US GAAP Accounting Treatment

IFRS IAS 1 Presentation of Financial Statements
US GAAP ASC 105 Generally Accepted Accounting Principles

❓ Frequently Asked Questions

Q: What are assets?

A: Assets are economic resources controlled by the entity from which future economic benefits are expected.

Q: How are assets classified?

A: Assets are classified into current assets (converted to cash within one year) and non-current assets (serve the entity for more than one year).

Q: Can the asset balance be negative?

A: No, the asset balance cannot be negative under normal circumstances. A negative balance indicates an accounting error.