What does an asset mean What does an asset mean?

Assets refer to the resources formed by past transactions or events of the enterprise, owned or controlled by the enterprise, and expected to bring economic benefits to the enterprise. Resources that do not bring economic benefits cannot be used as assets and are the rights of enterprises. Assets can be divided into current assets, long-term investments, fixed assets, intangible assets and other assets according to liquidity.

Among them, current assets refer to assets that can be realized or consumed within one business cycle of one year or more than one year, including cash, bank deposits, short-term investments, expenses to be amortized, inventory, etc. Long-term investment refers to investments other than short-term investments, including various equity investments that are held for more than one year, bonds that cannot be realised or are not ready to be realized, other debt investments and other long-term investments.

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Assets refer to the resources that are formed by the past business transactions or various events of the enterprise, owned or controlled by the enterprise, and are expected to bring economic benefits to the enterprise.

An asset is anything of commercial or exchange value owned by any company, institution, or individual.

There are many classifications of assets, such as current assets, fixed assets, tangible assets, intangible assets, immovable assets, etc.

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It refers to assets that are owned by the business and can be freely disposed of, i.e., owner's equity. It consists of two parts, one part is the capital invested at the beginning of the enterprise, including the premium part, and the other part is created by the enterprise in the course of operation, including the assets that receive donations.

Net assets = assets - liabilities, which increase or decrease due to the impact of profit and loss each year.

The amount of owner's equity at the end of the period "does not equal or represent" the market value of net assets.

Since it is the market value (usually the current market value), of course "does not equal or represent" the amount of owner's equity at the end of the business period (in this case, the historical cost).

Net assets are the owner's equity, which refers to the economic interest enjoyed by the owner in the assets of the enterprise, and its amount is the balance of the assets minus the liabilities. Owners' equity includes paid-in capital (or share capital), capital reserve, surplus reserve, and undistributed profits.

The calculation formula is: net assets = owners' equity (including paid-in capital or share capital, capital reserve, surplus reserve and undistributed profits, etc.) = total assets - total liabilities.

Net assets are the excess of assets over liabilities of an enterprise group, i.e., the net value of all assets minus all liabilities. Net assets represent the value of the property of the owners (business owners or shareholders) of a business group in the business. It includes share capital, provident fund (surplus provident fund, capital reserve), undistributed profits, etc.

Since the net asset value of an enterprise group belongs to the shareholders, it is called "shareholders' equity" in accounting. It is an important indicator that reflects the operating performance of an enterprise group.

Net assets are affected by the owner's original investment, additional investment, profits and losses incurred by the enterprise group subsequently, and the amount withdrawn from accumulated profits or investments. In the basic data of this plan, in order to reflect the equity and credit risk of the shareholders of the enterprise group, only tangible assets are included. As for intangible assets such as the reputation of enterprise groups and patent rights, they are not involved in the calculation for the time being.

Considering that the evaluation of comprehensive strength should reflect the reality of the sustained and stable development of the enterprise group, the net assets are calculated on the basis of the average value at the end of the three years. Namely:

Net assets = (net assets at the end of the current year + net assets at the end of the previous year + net assets at the end of the year two years ago) 3

The year in the calculation formula is defined as the turnover.

If the entity view of profit is adopted, the net assets are equal to the shareholders' equity plus creditor's rights; If the ownership of profits is viewed, net assets are equal to shareholders' equity.

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Assets refer to the resources formed by past transactions or events of the enterprise, owned or controlled by the enterprise, and expected to bring economic benefits to the enterprise. Assets are one of the most basic elements of accounting, and the accounting equation composed of liabilities and owners' equity has become the basis of financial accounting. In the accounting identity:

Assets = Liabilities + Owners' Equity.

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Assets refer to the resources that are owned or controlled by the enterprise and are expected to bring economic benefits to the enterprise as a result of past transactions or events. Anything of commercial or exchange value owned by any business entity, business or individual. Assets can be divided into current assets and non-current assets according to their liquidity (turnover and liquidity of assets).

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