What term is used to describe anything that a business owns, including cash on hand and equipment?

The term "assets" refers to anything that a business owns, which includes both tangible and intangible items. This can encompass cash reserves, inventory, property, machinery, patents, and more. Assets are crucial for a business as they represent the resources that can be used to generate revenue and support operations.

Understanding assets is fundamental in financial accounting, as they are recorded on the balance sheet and play a vital role in assessing a company's financial health. By recognizing the value of assets, businesses can make informed decisions about investments, budgeting, and strategic planning. This differentiation is essential when contrasting assets with liabilities, which represent obligations a business owes, or equity, which signifies ownership interest in the company's assets after liabilities are settled.