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an asset is a resource that is owned or controlled by an individual corporation or government expecting it will generate a positive economic benefit classification of assets is a process for systematic segregation of the assets into various groups based on the nature of the assets by application of the accounting rules to make proper accounting under each group properly identifying and classifying the assets is vital to the survival of a company specifically its solvency and associated risks classification of assets assets are generally classified in three ways the first way is convertibility that means classifying assets based on how easy it is to convert them into cash assets are classified as either current assets or fixed assets number two physical existence classifying assets based on their physical existence assets are classified as either tangible assets or intangible assets the third ways usage classifying assets based on their business operation usage or purpose assets are cla
