Net Worth Flashcards
what does personal net worth mean?
what you’re worth financially after paying off all debts
what does owners equity mean?
the owner’s rights to the assets of the business (what’s left over for the owner after subtracting all the liabilities from the assets)
what is the equation of personal net worth?
assets (stuff owned) - liabilities (stuff owed) = personal net worth
what is the equation for owners equity?
assets (stuff owned) - liabilities (debt owed) = owners equity
what are assets?
things owned
what is are liabilities?
debts owed
what is a debtor?
an individual or organization that owes money to another individual or organization
what is a creditor?
an individual or organization that lends money to another individual or organization
what does financial position mean?
a companies financial position
