An asset is anything that can be used to produce value. This includes both physical and intangible assets. Physical assets are things like land, buildings, machinery, and raw materials. Intangible assets are things like intellectual property, copyrights, and patents.
In order to generate value, an asset must be put to use. For example, a piece of land can be used to grow crops or build a house. A machine can be used to create products. And a patent can be used to develop a new technology.
The value of an asset is not always easy to determine. In some cases, the value may be based on the market price of similar assets. In other cases, the value may be based on the expected future cash flow from the asset.