Question

Define liability. Define asset. Define net worth. Give a detailed example of all 3.

Answer 1

Answer:

Mark brainliest

Step-by-step explanation:

Liability: A liability is an obligation arising from a past business event. It is reported on a company's balance sheet. Liabilities are also part of the basic accounting equation: Assets = Liabilities + Stockholders' Equity. Liabilities are often viewed as claims against the company's assets.

Example: A student loan which someone has to pay off over time.

Asset: Asset. Something you own that has value. Specially if it helps you make money, but it doesn't have to. Examples: personal property, real estate, stocks/shares, bank accounts.

Example: Shares of a stock which can help someone gain profit.

Net Worth: Net worth is the value of all the non-financial and financial assets owned by an institutional unit or sector minus the value of all its outstanding liabilities.

Example: Someone has $100,000 but has a $30,000 student loan, so the net worth of they have is $70,00 because it is total assets - total liabilities = net worth.