The proprietor of a business can prepare a list of business assets that have accrued over the life of the business. However, certain assets are subject to depreciation. Assets fall into several categories:

• Current
• Intangible
• Plant

Current assets include those to which current creditors may look for payment; this may be cash or assets expected to be consumed annually. Intangible assets have no physical nature and are derived from rights conferred upon the proprietor such as goodwill, trademarks, and patents. Plant assets include land, buildings, and equipment. Depreciation occurs on buildings and equipment as a result of aging.