Series 14: 4.1.1.1. Net Worth

Taken from our Series 14 Online Guide

4.1.1.1. Net Worth

Net worth is the difference between assets and liabilities.

On a balance sheet, assets must always equal liabilities plus owners’ equity. Assets are what a firm owns. Liabilities are what a firm owes to outsiders. Owners’ equity is what a firm owes to its owners. When a firm first opens for business, owners’ equity is the amount of cash owners put into th

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