Net worth and stockholders' equity are both equal to the difference between assets and liabilities.

Name: Net worth and stockholders' equity are both equal to the difference between assets and liabilities.
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Question

Quizplus · Accepted Answer

Net worth and stockholders' equity are both measures of the residual value of a company after all liabilities have been subtracted from assets. Therefore, they are both equal to the difference between assets and liabilities.

Net Worth and Stockholders' Equity Are Both Equal to the Difference