What are assets?

The assets represent the assets of the respective company in the balance sheet. The asset side provides information about how the available capital was invested. It consists of current assets and fixed assets.

Current assets: This includes liquid assets such as cash in the cash register, at the post office, or at a bank. It also includes credits with customers, the so-called receivables. Receivables are open customer invoices. Also, the inventory, called supplies, belongs to the current assets.

The individual items in current assets are listed according to their degree of liquidity. That means the "most liquid" assets come first. For instance, cash in the cash register. Receivables, on the other hand, would come at the end because they only become "liquid" (liquidated) when the customer actually pays their debt.

Fixed assets: Fixed assets include all assets that are available to the company over a longer period, such as office furniture or vehicles.