Total Assets

30/06/2021 0 By indiafreenotes

Assets are defined as resources owned by the company from which future economic benefits are expected to be generated. Total assets are the sum of non-current and current assets, and this total should equal the sum of stockholders’ equity and total liabilities combined.

The formula for Total Asset is:

Total Assets = Non-Current Assets + Current Assets

Non-Current Assets: Non-Current Assets are those assets that a company holds for more than one financial year, which are not readily convertible into cash or cash equivalents.

Current Assets: Current Assets are those assets that are expected to be converted into cash or cash equivalents within one financial year.

Asset for Small Business

  • Cash
  • Accounts receivable (money owing)
  • Customer deposits
  • Office furniture and equipment
  • Cell phones
  • Computer hardware and software
  • Tools, machinery and equipment
  • Vehicles
  • Real estate (buildings etc.)
  • Lease agreements and money spent to improve a leased space
  • Inventory
  • Investments that mature in less than 90 days (i.e. stocks, U.S. treasuries, bonds, mutual funds)
  • Pre-paid insurance
  • Intellectual property (i.e. know-how)
  • Brand equity (recognition)
  • Company reputation
  • Copyright
  • Trandmarks
  • Patents
  • Franchises
  • Licensing agreements
  • Domain name
  • Employment contracts
  • Customer lists
  • Client relationships