Net worth is
A)a measure of a firm's profits.
B)unrelated to stockholders' equity.
C)the difference between a firm's assets and liabilities.
D)listed on the asset side of a firm's balance sheet.

Question

Quizplus · Accepted Answer

Net worth is the difference between a firm's assets and liabilities. It represents the amount of ownership or equity that the company's shareholders have in the business. It is also known as shareholder equity or book value. It is listed on the liability side of the balance sheet because it represents the claims of the company's owners on the assets of the firm. It is an important measure of the company's financial health and profitability.

Net Worth Is