Question

write a short note on Net worth only theory

write a short note on Net worth only theory

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Answer #1

Net worth is a tool or a financial matrice to measure the financial health of an individual, company, country, group etc. It is roughly equal to the value of the total assets - Total liabilities. Assets are the possession which we own and have a monetory value whereas liability are the obligations to which we owe money. Assets - Liabilities is also called equity position. Assets can be form of land, building, cars, cash etc. Whereas liability would be loans, bills etc.

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