Definition:

An asset is something we own. This can be a wide range of things from cash, financial investments, a computer, car, building, or even a legal right to something (e.g. planning permission, a patent or option to buy something at a future date).

Example:

You store products in a warehouse (inventory). These products are worth something as they can be sold to generate revenue. This makes inventory a company asset.

Why it matters:

The value of a company is affected by its potential to generate future cash flows, and by the value of assets it already owns.