Net worth (sometimes "net assets") is the total assets minus total liabilities of an individual or company. For a company, this is called shareholders' equity or net assets. In business and accounting an asset is anything owned which can produce future economic benefit, whether in possession or by right to take possession, by a person or a group acting together, e. ... In the most general sense, a liability is anything that is a hindrance, or puts one at a disadvantage. ... A company is, in general, any group of persons, which are known as its members, united to pursue a common interest. ... In business and accounting, the shareholders equity refers to the amount of assets that are owned by a companys shareholders. ... The net assets is sometimes the same as the net worth, or shareholders equity, assets minus liabilities. ...

To calculate net worth, there are roughly two approaches. The first is to value all assets and liabilities at the value they were obtained, less depreciation or plus appreciation. This is typically done in accounting to produce companies' balance sheets. The disadvantage of this approach, is that the value at which an item is listed, might not be the amount that you receive when you try to sell it. To remedy this problem, assets are sometimes marked to market. This means, that the value that is used for an item is that at which you can sell it in the open market. Using this method net worth will vary, as prices on the open market vary. It is sometimes difficult to find a mark to market for illiquid assets, such as real estate and shares in unlisted companies. The estimate has to be made then based on readily available comparable valuations. Accountancy (British English) or accounting (American English) is the process of maintaining, auditing, and processing financial information for business purposes. ... In formal bookkeeping and accounting, a balance sheet is a statement of the book value of a business or other organization or person at a particular date, usually at the end of its fiscal year, as distinct from an income statement, also known as a statement of profit and loss... In economics, mark to market is the act of assigning a value to a position held in a tradeable financial instrument based on the current market price for that instrument. ... In economics, mark to market is the act of assigning a value to a position held in a tradeable financial instrument based on the current market price for that instrument. ... Real estate is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings. ...

See also

• Millionaire
• Billionaire