Liabilities can be calculated by
A)adding assets plus net worth.
B)subtracting net worth from assets.
C)adding assets plus income.
D)subtracting expenses from assets.

Question

Quizplus · Accepted Answer

Liabilities are the total amount of debt owed by an individual or organization. It is calculated by subtracting the net worth (total assets minus total debts) from the total assets. Therefore, option B (subtracting net worth from assets) is the correct answer. A, C, and D are not relevant to calculating liabilities.

Liabilities Can Be Calculated by