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what is net worth
 Question Submitted By :: Accounting-AllOther
I also faced this Question!!     Answer Posted By  
# 1
In business, Net worth (sometimes "net assets") is the
total assets minus total liabilities of an individual or a
company. For a company, this is called shareholders' equity
and may be referred to as book value. Net worth is stated
for a particular point in time.

In personal finance, net worth is also used to refer to an
individual's net financial position; similarly, it also
uses the value of all assets minus the value of all
liabilities (debt).

Net worth in business is generally based on the value of
all assets and liabilities at the carrying value, that is,
the value as expressed on the financial statements. To the
extent that items on the balance sheet do not express their
true ("market") value, the net worth will also be

Net worth in this formulation is not an expression of the
market value of the firm: the firm may be worth more (or
less) if sold as a going concern.
Is This Answer Correct ?    186 Yes 34 No
Vipul Sharma
# 2
Net worth is a stockholder's equity, it consist of equity
share capital plus reserve and surplus. In other words its
a difference between total assest and total liabilities.
Is This Answer Correct ?    172 Yes 27 No
Manoj Tirkey
# 3
"networth" means aggregate of value of paid up equity
capital and free reserves (excluding reserves cerated out
of revaluation)reduced by the aggregate value of
accumilated losses and deffered expenditure not written off
(including miscellaneous expenses not written off)
Is This Answer Correct ?    115 Yes 17 No
Krishna V
# 4
Is This Answer Correct ?    116 Yes 44 No
# 5
There are two methods to calculate the networth of a
First is net assets value method in which the networth is
the result of (Total Assets less total liabilities)

Second is the Shareholders equity method in which the
networth is the result of (Total paid up capital+ free
reserves less accumulated losses or Miss. expenditures not
written off)
Is This Answer Correct ?    77 Yes 7 No
Vinod Goyal Cs
# 6
equity share capital+preference share capital + reserve and
surplus + profits - fictitious assets like preliminary
expense - losses
Is This Answer Correct ?    54 Yes 8 No
Vipin Agrawal
# 7
Net worth is capital + reserve or Total asset - Total
Is This Answer Correct ?    44 Yes 7 No
Jnananjaya Palai
# 8
Excess of total assets over liabilities is called net worth 
Is This Answer Correct ?    51 Yes 19 No
# 9
Net Worth is also called Net value of asset(NAV). It will
calculate by giving formula NAV = Total assets - total
liabilities divided by outstanding units.
Is This Answer Correct ?    55 Yes 34 No
Ketan Deepak
# 10
Net worth is the total of Equity share capital, Preference
share capital, Reserves and surplus,Net profit, Retained
earnings minus fictitous assets and unwritten expenses
Is This Answer Correct ?    12 Yes 1 No

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