What does average total assets mean on the CPA exam?
Average total assets. The average of opening and closing total assets, used wherever a period flow like sales is compared to a balance.
Which CPA exam sections use average total assets?
Average total assets appears in the FAR section of the CPA exam.
Related terms
- total asset turnover: Sales divided by average total assets.
- total assets: Everything the entity controls that is expected to produce future benefit, added up.
- capital assets: In GOVERNMENTAL reporting, long-lived assets such as land, buildings and infrastructure.
- net assets: Assets less liabilities.
- hot assets: A partnership's unrealized receivables and inventory.
- total liabilities: Everything the entity owes, added up.