1. What is Total Assets?

Total Assets represent the sum of all assets owned by a company or individual, including both current assets (cash, inventory, receivables) and fixed assets (property, equipment, long-term investments).

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Current Assets — Assets expected to be converted to cash within one year
• Fixed Assets — Long-term tangible assets used in operations

Explanation: This fundamental accounting equation provides a snapshot of an entity's total resources at a given point in time.

3. Importance of Total Assets Calculation

Details: Total Assets is a key metric in financial analysis, used to assess company size, financial health, and as a denominator in important ratios like return on assets (ROA).

4. Using the Calculator

Tips: Enter current assets and fixed assets in dollars. Both values should be positive numbers representing the dollar amounts from your balance sheet.

5. Frequently Asked Questions (FAQ)

Q1: What's included in current assets?
A: Current assets typically include cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other liquid assets.

Q2: What's included in fixed assets?
A: Fixed assets include property, plant, equipment (PP&E), long-term investments, intangible assets, and other non-current assets.

Q3: How often should total assets be calculated?
A: For businesses, total assets should be calculated at least quarterly for financial reporting. Individuals might calculate it annually for net worth statements.

Q4: Where does total assets appear on financial statements?
A: Total assets appears on the balance sheet (statement of financial position) and is the sum of all asset accounts.

Q5: How does total assets relate to the accounting equation?
A: In the fundamental accounting equation (Assets = Liabilities + Equity), total assets equals the sum of liabilities and owners' equity.