Legal Definitions - admitted asset

Definition: An item that is owned and has value. It can refer to:

• The entries on a balance sheet showing the items of property owned, including cash, inventory, equipment, real estate, accounts receivable, and goodwill.
• All the property of a person (especially a bankrupt or deceased person) available for paying debts or for distribution.
• An asset that by law may be included in evaluating the financial condition of an insurance company.

For example, a company's cash, inventory, and equipment are all admitted assets that can be used to evaluate its financial condition. In the case of a bankrupt person, all their property can be used to pay off their debts, including admitted assets like real estate and accounts receivable. In the insurance industry, admitted assets are those that can be used to determine the financial strength of an insurance company.