Bookmark and Share

TOTAL ASSETS is the total of all assets; both current and fixed.

Learn new Accounting Terms

FULL DISCLOSURE, generally, is the requirement to disclose all relevant or material facts to a transaction.

FIXED ASSETS (NET) / NET WORTH measures liquidity by comparing "fixed" assets with "fixed" capital. A lower ratio indicates proportionately smaller investment and a better "cushion" for creditors in case of liquidation. This may be important if the fixed assets are not easily used in other businesses. The presence of substantial leased fixed assets (not shown on the balance sheet) may deceptively lower this ratio. Therefore smaller is better, i.e., greater than .75 (75%) should merit caution.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.