Net, Net Assets, Net Asset Value, Net Cost

Net, Net Assets, Net Asset Value, Net Cost :

Net : Whatever amount that remains after various deductions, for example, sales minus returns and allowance, profit minus taxes, slipping weight minus the cost of packaging, etc. The standard understanding of the terms like net sales or net profit, generally varies from organisation to organisation, from report to report, depending on the polices followed by the various organisations

Net Assets : The total worth of all company’s assets minus the liabilities : Also referred to as the owner’s equity or net worth

Net Asset Value : Calculated by subtracting the value of unreal assets from the net assets and then dividing the number so obtained by the total number of the outstanding shares : Also referred to as the book value of a share of stock

Net Cost : It is calculated by subtracting anything that is obtained by selling it or trading in it from the original cost : It is also the first step taken by the executives for the calculation of profit or loss for the purpose of tax estimation.


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