30 Resources and Assets

Resources and assets are two terms that are often used interchangeably but they have distinct meanings and implications.Resources refer to the inputs that are used in the production of goods and services. These can include natural resources such as land minerals and water as well as human resources such as labor and expertise and financial resources such as capital and credit. Resources are necessary for the creation of assets and the functioning of economic systems.Assets on the other hand refer to the tangible or intangible things that have value and are owned by individuals businesses or governments. Assets can include physical objects such as real estate vehicles and equipment as well as financial instruments such as stocks bonds and cash. Assets are used to generate income create wealth and provide a store of value.In summary resources are the inputs used to create assets while assets are the outputs of the production process that have value and can be used to generate income or provide a store of value.