How to calculate assets and net assets
The sum of the assets of the enterprise is the left side of the balance sheet. It shows the value of the property of the company at the reporting date. All assets of the enterprise include tangible, intangible and financial assets. Tangible assets that have a material form include buildings, structures, land, materials, spare parts, stocks of finished products, etc. Financial assets are accounts receivable of an enterprise, cash on hand and on settlement accounts, securities, long-term and short-term financial investments. Intangible assets mean the right to use intellectual property. These may include various patents, licenses, trademark rights, etc. The totality of the entire property of the enterprise and will be its assets.
Gross and net assets are distinguished depending on the source of formation. Gross assets are financed at the expense of own and borrowed capital, net - only at the expense of own.The amount of net assets can be defined as the difference between the value of assets and liabilities accepted for calculation purposes.
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