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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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16y ago
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6mo ago

Net worth is the total assets (such as cash, investments, property) an individual or entity owns minus their liabilities (such as debts, loans, mortgage). It represents the overall financial health and wealth of a person or business.

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Q: What is meant by the term Net worth?
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