A person's net worth is computed by:
A)adding assets and liabilities.
B)deducting current living expenses from total assets.
C)subtracting total liabilities from total assets.
D)subtracting assets from current liabilities.
E)adding liabilities and budgeted expenses.

Question

Quizplus · Accepted Answer

Net worth is calculated by subtracting total liabilities (what is owed) from total assets (what is owned). This gives a clear picture of an individual's financial position at a point in time.

A Person's Net Worth Is Computed By