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The balance sheet is also known as a net worth statement.
Definition equity net worth. On the other hand net worth is a generic term that describes what a company individual can keep after paying off its his liabilities. Owner s equity and net worth typically are used to mean the same thing. The value of a company s equity equals the difference between. Shareholders equity or net worth definition the shareholders equity or net worth of a company equals the total assets what the company owns minus the total liabilities what the company owes.
This measured value is used to determine a business s net worth or the funds that would be left over and available to shareholders if all liabilities and debts were paid off. Net worth assets liabilities. However one difference is that owner s equity more often defines the value of an individual s investment in a business whereas net worth refers to the overall book value of the company. Shareholder equity is a specific term that describes how much the owners have after paying off the total liabilities.
The net equity value equation.
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