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Typically Net Worth is used regarding individuals. It is the difference between all of our assets and all of your liabilities. All of you assets is truly everything - cars, house, cash, savings, collections, home furnishings, jewelry etc. And accordingly Liabilities also means everything - mortgages on homes, loans on boats, rv's and cars, credit cards, unpaid utilities, etc. A statement of Net Worth is typically prepared / presented when apllying for a loan or in financial planning.

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Q: What is meant by the term Net worth?
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