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

Question

Quizplus · Accepted Answer

Net worth is the difference between total assets and total liabilities. This means A is the correct choice as it subtracts total liabilities from total assets to arrive at the net worth of a person. The remaining choices either add liabilities and expenses or subtract assets from liabilities, which would result in an incorrect calculation of net worth.

A Person's Net Worth Is Computed by