Net Worth

Front

What is net worth?

Back

Net worth is the difference between total assets and total liabilities. It represents the value of an individual's or entity's financial position.

Front

How do you calculate net worth?

Back

Net worth = Total Assets - Total Liabilities.

Front

What are assets?

Back

Assets are resources owned by an individual or entity that have economic value, such as cash, real estate, and investments.

Front

What are liabilities?

Back

Liabilities are financial obligations or debts that an individual or entity owes to others, such as loans and credit card debt.

Front

If your total assets are $200,000 and your total liabilities are $100,000, what is your net worth?

Back

$100,000.

Front

If Jin's total assets are $8,794 and her total liabilities are $6,292, what is her net worth?

Back

$2,502.

Front

Is a retirement account considered an asset or a liability?

Back

An asset.

Front

If your total liabilities are $600,000 and your total assets are $500,000, what is your net worth?

Back

-$100,000.

Front

If your total assets are $300,000 and your total liabilities are $400,000, what is your net worth?

Back

-$100,000.

Front

What does a negative net worth indicate?

Back

A negative net worth indicates that liabilities exceed assets, meaning the individual or entity owes more than they own.