You can create as many albums as you need to manage assets. An asset can be in many albums but there is still only one version of the asset in the asset manager.
In addition there are smart albums managed by the CMS.
(A) Click to create a new album. More about creating albums
(B) Smart album (red) with any assets that are not in another album. More about albums
(C) Smart albums (blue) these organise assets by mime type - all, images, documents (PDF, Word etc), video.
(D) Your albums organised alphabetically A-Z.