What do we call things that a person owns that can be converted to cash?

Assets are defined as resources owned by an individual or entity that can be converted into cash or are expected to provide future economic benefits. This includes cash itself, real estate, vehicles, stocks, and other items of value that can be sold or otherwise liquidated to obtain cash.

In the context of finance and accounting, understanding assets is critical because they play a significant role in determining net worth and the financial health of an individual or organization. A clear understanding of assets is essential for mortgage loan officers as they assess a borrower's financial stability and ability to repay a loan.

While liabilities refer to what an individual owes, and equity suggests ownership interest remaining after liabilities are deducted from assets, the term investments usually refers specifically to assets purchased with the hope of generating income or appreciation. Therefore, the correct identification of "assets" encompasses the broader definition of all owned resources that can be converted to cash.