ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Net worth is calculated by subtracting all liabilities from assets. An asset is anything owned that has monetary value, while liabilities are obligations that deplete resources, such as loans, accounts payable (AP), and mortgages.

Detailed explanation-2: -Net worth is the total value of all assets minus any liabilities. Put simply, net worth is what you own minus what you owe. Calculating net worth can be a helpful way to determine one’s wealth and the overall health of a person’s or company’s financial situation.

Detailed explanation-3: -Your net worth is the amount by which your assets exceed your liabilities. In simple terms, net worth is the difference between what you own and what you owe. If your assets exceed your liabilities, you have a positive net worth.

Detailed explanation-4: -Assets are the total of your cash, the items that you have purchased, and any money that your customers owe you. Liabilities are the total amount of money that you owe to creditors. Owner’s equity, net worth, or capital is the total value of assets that you own minus your total liabilities.