What Is the Definition of Total Assets?

Land is an asset to the owner of the property.

In business, total assets consist of all assets of a company. An asset is defined in business as any items of ownership convertible into cash. Examples of assets include cash, notes and accounts receivable, securities, inventories, goodwill, fixtures, machinery, real estate and the like. All assets, and the total cash value of the total assets, are reported on the company's balance sheet. Assets are defined by the Financial Accounting Standards Board and accounted for according to the Generally Accepted Accounting Principles.

How do the Professionals Define Assets?

Money owed to the business, otherwise called receivables, is also an asset.

According to the Financial Accounting Standards Board (FASB) assets are items owned by the company that can be converted to cash in a short time frame. Once converted to cash, a company may utilized the money to pay outstanding company liabilities. The various categories of assets include: cash and cash equivalents; receivables; investments; inventories; other assets; intangible goods; and property, plant and equipment.

Are all Assets the Same?

Each company will have different assets on record. The difference is due to industry needs, as well as a company's investment portfolio. A company's investment portfolio may be a secondary way for a company to generate money and may not be directly related to the company's industry. Example of investment assets include equity securities and joint ventures.

What are Some Examples of Miscellaneous Assets?

Examples of other or miscellaneous assets that may not be directly a part of the company industry may include: capitalized costs, insurance, construction, development stage entities, contracts, real estate, franchises, financial services, regulated operations and the like.

Where Does a Company List its Assets?

Assets are listed on the company's balance sheet. All assets will be listed according to the Generally Accepted Accounting Principles and the value of each asset category will be included. A total asset line will sum up the value of all company assets.

References

• Financial Accounting Standards Board
• FASAB: Generally Accepted Accounting Principles
• AICPA: American Institute of CPAs