- 1). Review the general ledger. Identify all asset accounts, which commonly include cash, inventory, accounts receivable, property, plant and equipment.
- 2). Compute the aggregate total for each asset account. Sum together the debits and credits for the current period. The difference --- which should almost always be a positive number --- is the current asset value.
- 3). Separate assets into one of two groups: current and long term. Current assets last less than 12 months and long-term assets longer than 12 months.
- 4). List the assets in order of liquidity in each group. For example, current assets fall under the order of cash and cash equivalents, accounts receivable and inventory.
- 5). Sum the aggregate figures for each asset group. Add together each group's total asset figures to determine a company's total assets for the current accounting period.
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