Net worth is
A)assets plus liabilities.
B)total income since the company began operations.
C)total shareholders' equity.
D)another name for net income.

Question

Quizplus · Accepted Answer

Net worth refers to the total shareholders' equity, which is calculated as assets minus liabilities, not assets plus liabilities. It is not the total income since the company began operations, nor is it another name for net income. Net worth gives an indication of the financial health and value of a company or individual by showing what is owned minus what is owed.

Net Worth Is