Which of the following statements is correct?
A)assets plus liabilities equal net worth
B)liabilities plus net worth equal assets
C)assets plus net worth equal liabilities
D)liabilities minus net worth equal assets

Question

Quizplus · Accepted Answer

The correct statement is B) liabilities plus net worth equal assets. This is based on the fundamental accounting equation, which states that the total assets of a business are always equal to the sum of its liabilities and owner's equity (net worth).

Which of the Following Statements Is Correct