A bank's net worth is equal to its:
A) Assets plus its liabilities
B) Assets minus its liabilities
C) Liabilities minus its assets
D) Profits plus its assets

Question

Quizplus · Accepted Answer

Net worth, also known as owner's equity, is the difference between a bank's assets and liabilities. This represents the total value that the bank's owners have in the institution after all debts and obligations have been paid. Therefore, the correct equation would be Net Worth = Assets - Liabilities.

A Bank's Net Worth Is Equal to Its