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What Are Net Assets?

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    Net Assets is a concept from Finance and accounting. It is a word that is used for the Net worth of a company. Actually Net Assets is derived by subtracting the liabilities from the assets.


    The Balance sheet of a company shows the Assets and the Liabilities. Now this does not show the full picture. Because a company might have many assets but these assets are of no use until and unless they balance out or exceed the liabilities. Thus, net worth shows whether the assets are able to cover the liabilities or not. 

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    Harry_m 

    answered 6 months ago

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