question archive A family with $45,000 in assets and $22,000 of liabilities would have a net worth of: a
A family with $45,000 in assets and $22,000 of liabilities would have a net worth of: a
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A family with $45,000 in assets and $22,000 of liabilities would have a net worth of:
a. $45,000.
b. $23,000.
c. $22,000.
d. $67,000.
b. $23,000.
c. $22,000.
d. $67,000.
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Answer:
b. $23,000.
Explanation:
The net worth is the difference between the total assets (current and non-current) and the total liabilities (long and short term).
For business firms the net worth is the difference between the total assets and the total liabilities. It can also be called owners equity or shareholders equity.
When total assets exceed total liabilities we have positive net worth, on the other hand, when the total liabilities exceed total assets, we have negative net worth.
