What is the difference between the equity and the net worth in accounting? How are these figures different? I know that equity is the contributed capital but how is the net worth calculated?
There is no such thing as net worth in accounting to be honest. They are essentially the same figure (assets-liabilities) but the net worth term is not used in accounting.
Net worth is the net assets or in other words the difference between the assets less the liabilities. Equity is exactly the same thing. The accounting equation is : Assets= Liabilities + Equity so yes, there are the same thing.
