If assets total $10,000 and liabilities total $6,000, what is net worth?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all

Prepare for your Personal Finance Goals, Budgeting, and Wealth Building exam with engaging quizzes and detailed explanations. Master the essential concepts needed to excel in your financial knowledge and secure a prosperous future!

Multiple Choice

If assets total $10,000 and liabilities total $6,000, what is net worth?

Explanation:
Net worth is the difference between what you own and what you owe. With assets totaling $10,000 and liabilities totaling $6,000, subtract to get $4,000. This $4,000 represents your ownership equity—the portion of your assets left after settling all debts. If liabilities were higher than assets, net worth would be negative; if there were no liabilities, net worth would equal your total assets.

Net worth is the difference between what you own and what you owe. With assets totaling $10,000 and liabilities totaling $6,000, subtract to get $4,000. This $4,000 represents your ownership equity—the portion of your assets left after settling all debts. If liabilities were higher than assets, net worth would be negative; if there were no liabilities, net worth would equal your total assets.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy