name the approach that takes the aggregate of all assets as capital
Answers
Answer:
What are Total Assets?
Total Assets, most commonly used in the context of a corporation, is defined as the assets owned by the entity that has an economic value whose benefits can be derived in the future. Assets are recorded in the balance sheet
of the firm.
#Assets are further classified into liquid assets and illiquid assets, depending on their liquidity. A liquid asset is that asset that can be easily converted into cash or readily sold for cash; otherwise, it is called an Illiquid asset.
#Assets are also classified on the balance sheet as either current assets or long-term assets. A current asset is that asset which can be liquidated within a year, whereas long-term assets are those assets that are liquidated in more than a year.
Total Assets Types
Here is the list of total asset types
Cash & cash equivalents
Marketable securities
Account Receivables
Prepaid Expenses
Inventory
Fixed Assets
Intangible Assets
Goodwill
Various other assets
Formula
Basic Formula in accounting is expressed as:-
Total Assets = Liabilities + Owner’s Equity