What is 'net worth' ? how is it computed? explain with an example?
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net worth is the amount by which assets exceed liabilities,another way to say is ,it's the value of everything you own
For example,an individual with total assets with $100,000 and $30,000 of total debt would have a net worth $100,000-$30,000=$70,000. A company's net worth is calculated in a similar manner ,but is referred to stockholder equity.
your net worth is everything you own of significance (your assets ) minus what you owe in debts (your liabilities)
For example,an individual with total assets with $100,000 and $30,000 of total debt would have a net worth $100,000-$30,000=$70,000. A company's net worth is calculated in a similar manner ,but is referred to stockholder equity.
your net worth is everything you own of significance (your assets ) minus what you owe in debts (your liabilities)
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Net worth refers to the total value of an individual or company expressed as total assets less total liabilities.
The net worth of an individual is simply calculated as total assets (e.g. home equity and portfolio value) less totaldebt (e.g. mortgage, credit card debt, auto loans, and educational loans).
For example, an individual with total assets of $100,000 and $30,000 of total debt would have a net worth of $100,000 – 30,000 = $70,000.
A company's net worth is calculated in a similar manner, but is referred to as stockholder equity.
The net worth of an individual is simply calculated as total assets (e.g. home equity and portfolio value) less totaldebt (e.g. mortgage, credit card debt, auto loans, and educational loans).
For example, an individual with total assets of $100,000 and $30,000 of total debt would have a net worth of $100,000 – 30,000 = $70,000.
A company's net worth is calculated in a similar manner, but is referred to as stockholder equity.
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