Final answer:
Net worth is the difference between total assets and total liabilities, representing wealth. This financial metric is crucial for evaluating an individual's or a firm's financial standing.
Explanation:
Net worth is defined as the sum of all assets minus all liabilities. It is a measure of an individual's or a firm's wealth. For example, in a bank's balance sheet, net worth is calculated by subtracting total liabilities from total assets. Ultimately, net worth reflects financial health by indicating if assets exceed liabilities.
Learn more about Net worth calculation here:
https://brainly.com/question/34644355
