Asset - GCSE Business Definition

What is an asset?

In GCSE Business, an asset is any item owned by a business that has a monetary value.

Assets can be classified by the length of time a business expects to keep them:

• Non-current assets are items owned by the business for more than one year. Examples include: 

  • Tangible assets such as buildings, land, machinery and vehicles

  • Intangible assets such as brands and intellectual property

  • Investments in other business businesses or projects

• Current assets include cash and items that can be turned into cash within 12 months

  • Cash is any money held by a business at a particular point in time, available immediately to pay bills or use as working capital. It is the most liquid of the current assets

  • Trade receivables are any money owed by customers that is typically expected to be paid within one to three months

  • Inventory is stock that a business needs to sell before it receives cash, so it is the least liquid of the current assets

Asset Revision Resources to Ace Your Exams

Save My Exams has a great range of resources to explore the topic of assets further. 

Read our GCSE Business assets and liabilities revision notes or test your knowledge of the statement of financial position, including assets, with our exam questions to improve your grades. 

Explore GCSE Business Revision Resources