Difference between revisions of "Net assets"
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− | + | :<span style="color:#4B0082">'''''Simple example'''''</span> | |
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+ | :Other assets are 70. | ||
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+ | :Cash is 30. | ||
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+ | : Total assets = Other assets + Cash = 70 + 30 | ||
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+ | :Total assets = '''100''' | ||
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+ | :Debt is (40) | ||
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+ | :Other liabilities are (10) | ||
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+ | :Total liabilities = Debt + Other liabilities = (40) + (10) | ||
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+ | :Total liabilities = '''(50)''' | ||
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+ | :Total assets - Total liabilities = 100 - (50) | ||
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+ | :Net assets = '''50''' | ||
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+ | Net assets are also equal to the book value of equity, also known as shareholders' funds. | ||
Revision as of 14:48, 26 May 2020
Financial reporting.
Net assets are equal to Total assets LESS Total liabilities.
- Simple example
- Other assets are 70.
- Cash is 30.
- Total assets = Other assets + Cash = 70 + 30
- Total assets = 100
- Debt is (40)
- Other liabilities are (10)
- Total liabilities = Debt + Other liabilities = (40) + (10)
- Total liabilities = (50)
- Total assets - Total liabilities = 100 - (50)
- Net assets = 50
Net assets are also equal to the book value of equity, also known as shareholders' funds.