When a company receives an asset from an unrelated party by a donation, the assets are valued at fair value and revenue is recorded.
What are assets?
- Anything of worth or a resource of value that can be exchanged for money is considered an asset. Assets belong to people, businesses, and governments.
- An asset may bring in money for a business, or the business may get anything from using or possessing the item.
- An asset is something that has both current and potential value.
- An asset, such as a piece of machinery, a financial instrument, or a patent, can frequently produce cash flows in the future.
Homes, cars, investments, works of art, and household goods are examples of personal property. Assets are listed on the balance sheet of corporations and are subtracted from liabilities and equity.
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