ACTIVE ASSET

An asset that is used by a business in its daily or routine operations. Active assets can be tangible, such as buildings or equipment, or intangible, such as patents or copyrights. Active assets are listed as assets on the business's balance sheet.

Businesses depend on active assets in order to function on a daily basis. Active assets stand in contrast to passive assets, which may not be needed by the business at a given time in order to operate. Active assets should also not be confused with active asset allocation, which is a type of investment strategy.