Net Worth VS Equity
net worth and equity they could be use as the same or different thing depending when it’s used. it could be use in a business or an individual.
net worth = assets – liabilities
equity = assets – liabilities
what give?
From a business point of view, shareholders equity is a liability to the business but an asset to the shareholders
BALANCE SHEET
Assets
Fixed asset:
Tangible and intangible assets
Current assets
Total assets
Liabilities
Shareholders equity:
- capital
Other Liabilities
Total Liabilities