Earning asset - Definition

An income producing Asset is defined as an earning asset. In business it is important to ensure that all assets are earning revenue for maximum return of assets. Idle assets reduce the efficacy of a business operation. Income from earning assets must be reported on the appropriate tax filings. While some earning assets require regular maintenance in the form of Capital expenditure (for example rental property, plants and factories) other assets such as marketable securities require minimal maintainance.



Terms near "Earning asset"

Earning capacity
Earning potential
Earnings
Earnings adequacy ratio
Earnings allowance
Earnings announcement
Earnings before Interest after Taxes (EBIAT)
Earnings Before Interest and Taxes (EBIT)
Earnings before tax
Earnings calendar
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