We can define an asset as anything tangible or intangible that can be owned or controlled to produce value a positive economic value.
There are two main types of assets and they are, current and non-current assets.
Total assets refers to the total amount of assets owned by a person or entity.
An asset can create income, reduce expenses, and store wealth.
Formula to calculate total assets.
Shareholders’ equity is the amount that shows how the company has been financed with the help of common shares and preferred shares.
Liabilities are legally binding obligations that are payable to another person or entity.
A certain company recorded a total of $ 500,000 as liability. The total shareholders’ equity for that year was $ 1,000,000. Calculate the total assets value of the company recorded that year.
Therefore, the total assets recorded that year was $ 1,500,000.