What is the value of everything an organization owns referred to as?

The term used to describe the value of everything an organization owns is "assets." Assets encompass a wide range of items, including physical properties such as buildings, machinery, and inventory, as well as intangible assets like patents and trademarks. They represent resources that can provide future economic benefits to the organization.

Understanding assets is crucial in financial assessments because they contribute to the overall net worth of the organization. By evaluating assets, stakeholders can gauge the organization’s financial health and operational capacity. In contrast, equity represents the ownership interest in the assets after deducting liabilities, while liabilities are the debts or obligations the organization owes, and capital generally refers to the financial resources used to fund operations or investments.