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Assets are anything that provide economic value to a firm.
Current assets can easily be turned into cash or expire within 1 year.
It can be easy to get these mixed up...
- Supplies help run the daily operations of the business.
- Inventory is used to create the end-product that's sold to customers.
Long term assets are used in business operations longer than 1 year.
Contra assets represent activities that decrease your assets.
