Net Worth or Equity
When two or more companies are merged with their assets and liabilities, they are called merger. Whereas when they are separated/detached from each other,they are called demerger.
Pledged assets to secured liabilities.
Fund balance
liabilities
Liabilities
When two or more companies are merged with their assets and liabilities, they are called merger. Whereas when they are separated/detached from each other,they are called demerger.
The ratio between current assets to current liability is called "Current Ratio".
Pledged assets to secured liabilities.
Fund balance
While in the process of revaluation of assets and liabilities, if the value of some assets increase more than the decrease in the value of some fixed assets then the difference of this increase and decrease if positive is called surplus on revaluation of fixed assets.
Fund balance
Equity or net worth
Assets = Liabilities + Shareholder equity
When your liabilities are greater than your total assets you are said to be "in the red." This is because negative numbers in a ledger are traditionally written in red.
1. Amount which remains after deducting all liabilities from all assets is called net worth of any company and that is the actual worth of company. FoFormula for net worth: NeNet worth = Total Assets - Total Liabilities
What is excess of total liability over a total assets?
Current assets minus current liabilities is called working capital and working capital is that free cash amount which is available for running day to day business functions.