The net wealth of an economic unit is determined by adding all the unit's assets to it net worth or equity capital.

Question

Quizplus · Accepted Answer

Net wealth of an economic unit is determined by subtracting all its liabilities from its total assets, not by adding assets to its net worth or equity capital. Net worth or equity capital is essentially the result of this calculation, not an additional component to be added.

The Net Wealth of an Economic Unit Is Determined by Adding