MANAGEMENT

Detailed explanation-1: -The balance sheet is also known as a net worth statement. The value of a company’s equity equals the difference between the value of total assets and total liabilities.

Detailed explanation-2: -One of the most common ways that individuals and companies check their financial health is with a net worth statement (a.k.a., balance sheet). A net worth statement is a financial tool that shows your financial position at a given point in time.

Detailed explanation-3: -A personal financial statement shows the individual’s net worth-their assets minus their liabilities-which reflects what that person has in cash if they sell all their assets and pay off all their debts. If their liabilities are greater than their assets, the financial statement indicates a negative net worth.

Detailed explanation-4: -personal balance sheet and the cash flow statement, also called personal financial statements.

Detailed explanation-5: -On a company’s balance sheet, net worth is demonstrated through the owners’ equity section.