TL;DR
An asset is anything of value owned by an individual or company.
Full definition
An asset in financial terms refers to any resource owned by an individual or entity that is expected to provide future economic benefits. Assets can be tangible, like cash, real estate, and equipment, or intangible, like patents, trademarks, and goodwill. They are recorded on the balance sheet and are classified as either current (convertible to cash within one year) or non-current (held for longer periods).
Why it matters
Assets are essential because they represent the resources a company or individual has to generate income and support operations. They form the foundation of an entity's financial stability and growth potential. Effective management of assets ensures that resources are used efficiently, contributing to profitability and long-term financial success.