What is net assets?

The net assets of an enterprise refer to the net amount of its total assets minus liabilities, which is equal to the balance of all its assets minus liabilities in quantity. Belong to the owner's equity. Net assets are the owner's equity in the balance sheet. They are owned by enterprises and can be freely controlled. They consist of two parts, one part is the capital invested at the beginning of the enterprise, including the premium part, and the other part is the assets created by the enterprise in its operation, including the donated assets. Net assets are the company's own capital, but for joint-stock companies, net assets are the property owned by shareholders, now commonly known as shareholders' equity. Net assets are total assets minus the company's external liabilities.

Other related definitions: 1. The concept and content of net assets of administrative units refer to the difference between assets minus liabilities and income minus expenditures of administrative units, including fixed funds and balances. 2. The concept and content of the net assets of public institutions refer to the difference between assets minus liabilities, including public funds, fixed funds, special funds and balances. The net assets of institutions include business funds, fixed funds, special funds, business balances and operating balances. Among them, the special fund refers to the special fund established by institutions according to regulations, mainly including employee welfare fund, medical fund, repair and purchase fund, housing fund, etc. 3. The net assets of non-governmental non-profit organizations refer to the balance of assets minus liabilities, indicating the difference of total assets of non-governmental non-profit organizations after all existing debts are compensated. It can be expressed as: assets and liabilities = net assets.