Description: An asset is typically any useful thing or something that holds value. Most people have personal assets, like cash, savings accounts, bonds, life insurance policies, jewelry, and collectibles. A person’s skills and abilities can also be an asset. In business, though, assets need to provide positive economic value. These resources must create or produce something that the company can sell for cash, or the resource itself must hold resale value. Calculating your total assets answers that question and gives you a clear image of your business's actual financial health. To do so, you'll use the following formula: Total Liabilities + Equity = Total Assets.
Category: Business
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