An asset is something containing economic value and/or future benefit.
What is assets and explanation?
- An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit. Assets are reported on a company's balance sheet. They are bought or created to increase a firm's value or benefit the firm's operations.
- A liability is something a person or company owes, usually a sum of money. Liabilities are settled over time through the transfer of economic benefits including money, goods, or services.
- Recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred revenues, bonds, warranties, and accrued expenses.
- An asset can often generate cash flows in the future, such as a piece of machinery, a financial security, or a patent. Personal assets may include a house, car, investments, artwork, or home goods.
Debt to Equity Ratio = 0.86
Debt to Equity Ratio = Total Liabilities / Stockholder's Equity
Total Liabilities = $0.84 million
Stockholder's Equity = $0.98 million
Debt to Equity Ratio = $0.84 million / $0.98 million
Debt to Equity Ratio = 0.857143
Debt to Equity Ratio = 0.86
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