What is the difference between the assets owned and any liabilities owed known as?

The distinction between the assets owned and the liabilities owed is referred to as Net Worth. This financial metric represents an individual's or entity's financial health, specifically the difference between what they own (assets) and what they owe (liabilities). Calculating net worth involves subtracting total liabilities from total assets; a positive net worth indicates that assets exceed liabilities, while a negative net worth means the opposite.

This concept is foundational in personal finance and lending, as it provides a clear picture of financial stability and can affect creditworthiness. For mortgage lenders, understanding a borrower's net worth is crucial when assessing their ability to repay a loan and their overall financial situation.

The other terms, while related to finance, do not accurately describe the relationship defined in the question. Equity typically refers to the ownership value in an asset after deducting liabilities, often used in the context of property ownership. Capital can refer to financial resources or assets that can be used for investment in a business context. Debt Severity is not a standard financial term used to describe the relationship between assets and liabilities.