Why is a net worth statement is needed?
A)To determine your net cash flow on an annual basis
B)To measure your cash accumulation
C)To measure the value of your assets minus debts
D)To measure expenses and develop priorities

Question

Quizplus · Accepted Answer

A net worth statement is used to measure the value of your assets minus debts, which gives you an overall picture of your financial health and helps you make decisions about your financial future. It is not used to determine your net cash flow on an annual basis, measure your cash accumulation, or measure expenses and develop priorities.

Why Is a Net Worth Statement Is Needed