Assets, Liabilities, Net Worth

Assets are resources owned by an individual or entity that have economic value and can provide future benefits.

Liabilities are financial obligations or debts that an individual or entity owes to others.

Net worth is the difference between total assets and total liabilities, representing the value of an individual or entity.

It indicates that Charlie has more liabilities than assets, resulting in a negative net worth.

Net worth is calculated by subtracting total liabilities from total assets.

A positive net worth signifies that an individual's assets exceed their liabilities.

A negative net worth signifies that an individual's liabilities exceed their assets.

Net Worth = Total Assets - Total Liabilities.

Examples of assets include cash, real estate, stocks, and personal property.

Examples of liabilities include loans, credit card debt, and mortgages.