Assets are economic resources that provide a future benefit for a business –something the business owns. Most firms use the following asset accounts:

• Cash. Cash means business’s money and any medium of exchange including paper currency, coins, certificates of deposit, and checks.
• Accounts Receivable. Companies might sell their goods and services on account and receives a promise for future collection of cash. The Accounts Receivable account holds a customer’s promise to pay in the future for services or goods sold on account. Arises from a credit sale. The company collects cash from the customer sometime after the sale.
• Notes Receivable. A note receivable is similar to an account receivable, but a note receivable is more formal than Accounts Receivable because the customer signed a formal note. Notes receivable usually includes interest.
• Prepaid Expenses. Companies might pay certain expenses in advance, such as insurance and rent. A prepaid expense is considered as an asset because the prepayment provides a future benefit for the business. Prepaid Rent, Prepaid Insurance, and Supplies are examples of prepaid expenses.
• Land. The Land account shows the cost of the land a business uses in its operations.
• Buildings. The costs of an office building, factory building, a warehouse, and other buildings appear in the Buildings account.
• Equipment, Furniture, and Fixtures. The cost of equipment, furniture and fixtures. A business has a separate asset account for each type of equipment, for example, Manufacturing Equipment and Office Equipment. The Furniture and Fixtures account shows the cost of these assets such as desks, tables, chairs, counters, etc.