What is Total Assets
Total assets are the economic value of everything that an individual or organisation has. The balance sheet in financial accounts typically lists the assets, which can be either tangible or intangible. A business might better understand its financial health and value by simply calculating its Total assets.
Total assets can be calculated by adding the sum of total liabilities and total equity.
The formula for calculating Total assets
Total assets can be calculated in two ways, which are the following:
- Total Assets = Current Assets + Noncurrent Assets
- Total Assets = Total Equity + Total Liabilities
Types of Total Assets