Why is net worth compared to a financial thermometer?

Answer and Explanation

Net worth is the cash which amounts when the assets exceed the liabilities. This means that all the things that you own when you subtract the debts you have this is what is considered as as Net worth. An example is that a company A has assets worth $5 and has its total debts of $2 so its net-worth will be $5-$2=$3 so $3 will be company's A Net worth. Net worth is compared as the financial thermometer basically because it helps the company or a certain firm to be able to monitor its wealth and maintain the equilibrium of its economy. It will also help them not to have more debts than the assets. This facilitates the growth of an economy.

commercial banking

provide online payment services

provide online banking

asset management firms

invest in people's funds in securities

accept tax return refunds