Net assets: Difference between revisions
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imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Add numerical example.) |
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:<span style="color:#4B0082">'''''Simple example'''''</span> | |||
: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. | |||
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.
