A step up in basis is a concept of adjustment of the actual and fair value of the market of an asset at a specific event such as at the acquisition or at the time of death of the decedent.

A capital asset is something that a business acquires for more than one year and it is not intended to sale in the normal part of the business operations.

In accounting terms, asset recovery refers to recognizing the value of those assets that were previously disposed of or impaired.

An insurance policy that provides cash value components can be considered an asset but a life insurance policy that does not allow cash value component is not an asset.

Prepaid insurance is an asset and recorded in the balance sheet as a current asset because normally insurance is made for a short period such as a year

Plant assets are fixed assets that are used in a business for making finished goods. The assets are used in a business for at least one year or more.

Retained earnings are those earnings that are retained and reinvested in the business instead of sharing to the shareholders. Retained earnings are sometimes termed accumulated earnings or retained profit.

Equipment is treated as an asset in accounting terms and classified as a fixed or non-current asset in the statement of financial position.

The account receivable is means of outstanding payment that is yet not paid by clients to the company for goods or services that the company has provided on the credit.

Some businesses make revenue from their production or manufacturing and some businesses make revenue by offering their services to the clients.

The land is one of the most popular examples of an asset that is not depreciated because its life is not defined or has an infinite life.

The cost of goods sold is an expense for a company that is recorded in the statement of profit and loss when goods are sold.