Classification of Assets
Fixed assets are utilized to create incomes.
Investments are expected to fetch income from external agencies.
Wasting assets are of a fixed nature but depleted or consumed gradually.
Assets, which have no market values, are known as fictitious assets. They are shown in the Balance Sheet on the asset side of it under the head “Miscellaneous Expenditure”.
Current assets are those which are utilized or converted into cash within one year period.
They are long-term resources of an entity, but have no physical existence. They derive their value from intellectual or legal rights, and from the value they add to the other assets.