HORTICULTURE

Detailed explanation-1: -Liabilities are generally listed on the right-hand side of the net worth statement and include all debts and loan obligations to pay that the farm business or family has on the date of the statement.

Detailed explanation-2: -An individual’s net worth is simply the value that is left after subtracting liabilities from assets. Examples of liabilities include debts like mortgages, credit card balances, student loans, and car loans.

Detailed explanation-3: -The main difference between liability and debt is that liabilities encompass all of one’s financial obligations, while debt is only those obligations associated with outstanding loans. Thus, debt is a subset of liabilities.

Detailed explanation-4: -A net worth statement is a financial tool that shows your financial position at a given point in time. It is like a “financial snapshot” that shows the dollar value of what you own (assets) and what you owe (liabilities or debts). This formula for calculating net worth is Assets – Liabilities = Net Worth.