Net Worth

Net Worth

The difference between total assets and liabilities; the sum total of the assets of an individual or business minus the total amount owed to creditors.

The net worth of a corporation is ordinarily determined by subtracting the liabilities from the assets, or by adding the capital account to the surplus account, as shown in the balance sheet of the company.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
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