Is an investment considered an asset?

Question

I am working on my accounting final and I am to add up the assets... I know that Cash is an asset along with accounts receivable and land... I am a little stumped on an investment.

Answer 1

Assets are things you own, liabilities are things you owe. Equity is the difference between the two. So yes, an investment is an asset.

Additional details:

Fees earned is revenue, which is an Income Statement item. Assets are Balance sheet items. The fees earned can be still owed (A/R), or paid (Cash, etc.), you can't tell from the line item.

Answer 2

Investment, as in stocks, IRA's, 401k, etc....are typically added in at only 70% of the current value to be considered a "liquid" asset.  However, if the question is vague, yes they are still assets.

Answer 3

Yes, investments are assets. (They may not have value, but they are still assets.)