Its calculation formula is: family net assets = family total assets-family liabilities.
Total household assets include the net investment value of real estate, deposits, stocks and bonds, the cash value of household appliances and furniture, the estimated value of intangible assets such as insurance policies and patents, and so on.
The total debt of a family is the money that the family has always owed to others, such as the mortgage owed to the bank, the overdraft of credit cards, the money borrowed from others, the things bought on credit, the decoration money owed, and so on.
Extended data:
Classification of household assets
Regarding the classification and content of family assets, there may be many classification methods. For example, according to the liquidity of property: fixed assets, current assets.
Fixed assets refer to physical assets such as houses, cars and articles; Current assets refer to cash, deposits, securities, funds and investment income. The so-called liquidity refers to the ability to respond to emergency payment or investment opportunities in time, or simply the ability to realize cash.
Among them, fixed assets can be divided into investment fixed assets and consumption fixed assets. Such as real estate investment, gold jewelry and other physical objects that can generate income; Consumer fixed assets are necessary daily necessities for family life. Their main goal is to provide for your family members to use, generally do not generate income (only depreciation), such as self-occupied houses, cars, clothes, computers and so on.
Family assets can also be classified by attributes: financial assets (financial assets), physical assets, intangible assets and so on. Financial assets include current assets and investment assets, while physical assets are houses, cars, furniture, computers and collectibles. Intangible assets are intellectual property rights such as patents, trademarks and copyrights.
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