MANAGEMENT

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: -In the liabilities section of a net worth statement, list the dollar value of debts. For mortgages, list the balance due. Also list unpaid bills due within the next month, credit card balances, and longer-term debts such as student loans.

Detailed explanation-3: -Total liabilities are the combined debts that an individual or company owes. They are generally broken down into three categories: short-term, long-term, and other liabilities.

Detailed explanation-4: -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-5: -Your net worth is the value of all of your assets, minus the total of all of your liabilities. Put another way, it is what you own minus what you owe.