Frequently Asked Questions

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Net worth is the dollar value of your personal assets minus your personal liabilities.

To figure it out, you add up all your assets such as savings, investments, real estate holdings, retirement accounts, etc.

Then deduct from that number all your personal liabilities (credit card balances, mortgages, student loans, etc.) and the difference is your Net Worth, assuming your Assets exceed your Liabilities.

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Current Assets - adhesive label pinned on bulletin board - horizontal image

Assets that are convertible into cash within 12 months are generally considered the Current Assets of a business.

Examples of typical Current Assets are:

• Cash on Hand
• Accounts Receivable
• Inventory

Current Assets are enumerated on the Balance Sheet.

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Category: Accounting

calculating net worthIn its simplest form, Net Worth is the difference between the value of your total assets and your total liabilities.

To calculate your personal net worth, identify all your assets (e.g., cash, investments, personal property, real estate, retirement accounts) and all your liabilities (e.g., credit card debt, auto leases, mortgages, student loans).

Then subtract the total liabilities amount from the total asset amount. The difference is your Net Worth.

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