What Are Total Assets?

Total assets refer to all assets owned or controlled by an economic entity that can bring economic benefits. Generally speaking, the total assets of an accounting entity is equal to the "total assets" of its balance sheet. Similar to the accounting standard in the United Nations SNA, the "assets" in China's asset-liability accounting refer to economic assets. The so-called economic assets refer to those assets whose property ownership has been defined and whose owners can obtain economic benefits from their effective use, holding or disposal within a certain period.

Total assets

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1. According to the period of holding assets, total assets are composed of current assets and long-term assets. The former are monetary assets, inventory, receivables, etc., while the latter are long-term investments, housing equipment, etc.

2. According to the turnover characteristics of assets, total assets are composed of current assets, long-term investments, fixed assets, intangible assets and deferred assets.

3. According to the different forms of assets, total assets are composed of financial assets and non-financial assets, tangible assets and intangible assets.