Which of the following terms refers to the amount of money that owners would receive if they sold all of a company's assets and paid all of its liabilities?
A) Asset
B) Owners' equity
C) Inventory
D) Profit
E) Credit

Question

Quizplus · Accepted Answer

This refers to the company's net worth or book value, which is calculated by subtracting the total liabilities from the total assets. If the company were to sell all of its assets and pay off its liabilities, the remaining amount would belong to the owners as their equity.

Which of the Following Terms Refers to the Amount of Money