Net worth- Understating all about it in brief

In simple terms, net worth is amount through which a person’s or company’s assets exceeds the liability. In accounting terms, it is capital= assets - liability. Here assets are business or things that one owns and liability is things or business one owes to another person. With its net worth means total actual value. It is important as a person do comparisons of the company with another and has to look where it stands. One having positive worth means it is funded enough and is able to fund current works without default fears to pay suppliers.

A negative one known as deficit means the company is out of assets to settle the obligations.  It fears that works might get stopped and creditors might rush towards company’s assets for satisfying obligations. It means the company is owned by creditors instead of the owner. If one is willing to know about the total worth of any big company owner or celebrity can refer to this link networthpost.org.

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