glossary

Net Assets

Net assets represent the difference between total assets and total liabilities. In simple terms, it shows the residual value remaining in the business after all obligations are deducted. This figure is important because it reflects the underlying worth attributable to the owners or stakeholders.

Related Items

Notes Receivable

Notes receivable are written promises from another party to pay a specified amount to the business at a future date, often with interest. They...

Notes Payable

Notes payable are written promises by a business to repay a specified amount at a future date, often with interest. They may arise from...

Normal Balance

Normal balance refers to the side, debit or credit, on which an account typically increases. For example, assets and expenses usually have a debit...

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