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