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how to calculate the average total assets. As a result calculating the average total assets for the period in question is more accurate than the total assets for one period. Identify the assets that are considered part of the operating process.
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Determine the amount of average total assets. Average total assets are calculated by dividing the sum of total assets at the beginning and at the end of the financial year by 2. Aggregate assets at end of current year Aggregate assets at end of preceding year 2.
Aggregate assets at end of current year Aggregate assets at end of preceding year 2.
The average assets of a company for the purposes of calculating ROA is found by taking the total assets at the beginning of an accounting period adding this to the total assets for the end of the relevant period and dividing by two. Identify the assets that are considered part of the operating process. This is the average earning assets. And then we need to add the beginning total assets and the ending total assets and then divide the sum by two to get a simple average.
