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Simple English definitions for legal terms
net assets
Read a random definition: long title
A quick definition of net assets:
Net assets refer to the total value of a person or entity's possessions, after subtracting any debts or liabilities they may have. It is a measure of how much wealth someone has. Think of it like a piggy bank - if you add up all the money you have in it and subtract any money you owe to someone else, the amount left over is your net assets.
A more thorough explanation:
Definition: Net assets refer to the total value of an individual or entity's assets minus their liabilities. It is a measure of one's wealth.
Example: If an individual has $100,000 in assets (such as property, investments, and cash) and $50,000 in liabilities (such as mortgages and loans), their net assets would be $50,000.
This example illustrates how net assets are calculated by subtracting liabilities from assets to determine an individual or entity's overall wealth.