How To Interpret Your Networth?
One of the important things to remember in Accounting 101 is that we know how to read or interpret what the numbers are telling us.
Typically, it is a G-O-O-D sign when…
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Our Networth are bigger than our Liabilities.
It spells D-A-N-G-E-R when…
Our Liabilities are bigger than our Networth.
What Is A Networth?
Capital, in accounting is referred to as “Networth.” It is what is left when we deduct the Liabilities from our Assets.
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In Accounting, the formula of a Balance Sheet is this:
Assets = Liabilities + Capital (or Networth)
What Is A Capital?
Capital, in accounting is referred to as “Networth.” It is what is left when we deduct the Liabilities from our Assets.
What Is A Liability?
In layman’s term, LIABILITIES are those putting away the money or value from your container, basket or pocket.
What Is An Asset?
In layman’s term, ASSETS are those putting money or value in your container, basket or pocket.
Welcome to my "I Empower Myself" Site! Feel free to read and browse around.
This site is my notepad. I post here collections of whatever it is that would help equip, recharge and strengthen the key areas of life—The Spiritual, Physical, Financial, Mental, Emotional, and Social/Relational Aspects. Like everyone else, I am face with life’s challenges too. As a way to keep me up, I made this site as my reviewer of life's lessons and learnings so I can go back to them from time to time. Also, I aim to share the learnings I acquired with everyone and to the world so everybody can empower, equip and strengthen one’s self.
Please note that some of the pages here are linked and interconnected to my other site, the "Here Anything Goes" or HAG (http://hereanythinggoes.info/)
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