Final answer:
The amount left after selling all assets and paying all debts is known as net worth. Net worth is calculated by subtracting total liabilities from total assets. It differs from gross income, liquid assets, and disposable income.
Step-by-step explanation:
The amount you would have left if all assets were sold and all debts were paid in full is called your net worth. This is determined by subtracting the total liabilities from the total assets. For example, in a T-account, which is a representation of the financial position of a company, the assets are on the left side and liabilities are on the right side. The net worth would be added to the liabilities side to show a balance where assets equal liabilities plus net worth.
It's important to distinguish net worth from other terms such as gross income, which is your total income before any deductions; liquid assets, which are assets that can be quickly converted to cash; and disposable income, which is the amount of money you have left after taxes have been paid.