Net financial assets (or net debt) is a measure of government financial position calculated as financial assets minus liabilities. Financial assets include cash, investments, and amounts owed to the government. When liabilities exceed financial assets, the result is net debt. This measure indicates a government's ability to finance future services and obligations. For municipalities, net financial assets/debt appears on annual financial statements as a key indicator of financial health. Unlike accumulated surplus which includes non-financial assets, net financial assets focus on liquid resources available to meet obligations. Provincial comparisons of municipal financial position often examine net financial asset ratios.