Net Worth Calculation

What is the formula to calculate net worth?

• Assets / Liabilities

• Assets x Liabilities

• Assets - Liabilities

• Assets + Liabilities

If a person has $50,000 in assets and $30,000 in liabilities, what is their net worth?

• $20,000

• $5,000

• $40,000

• $10,000

True or False: Net worth represents the total value of a person's assets minus their liabilities.

• Net worth represents the total value of a person's liabilities minus their assets.

• Net worth represents the total value of a person's income minus their expenses.

• Net worth represents the total value of a person's assets minus their liabilities.

• Net worth represents the total value of a person's debts plus their assets.

If a person's assets are $100,000 and their liabilities are $80,000, what is their net worth?

• $20,000

• $100,000

• $50,000

• $10,000

What does a positive net worth indicate?

• Net worth is equal to zero.

• There is no net worth.

• Assets exceed liabilities

• Liabilities exceed assets.

What does a negative net worth indicate?

• A negative net worth indicates a high income and low expenses.

• A negative net worth indicates a lack of financial planning.

• A negative net worth indicates debt or financial liabilities exceeding assets.

• A negative net worth indicates a successful investment strategy.

If a person's assets are $200,000 and their liabilities are $250,000, what is their net worth?

• $50,000

• $150,000

• $0

• -$50,000

True or False: Net worth is always a positive value.

• True

• Net worth can be negative

• Net worth can be zero

• False

If a person's assets are $500,000 and their liabilities are $400,000, what is their net worth?

• $300,000

• $50,000

• $100,000

• $200,000

What are some examples of assets and liabilities?

• Land, buildings, patents, trademarks, salaries

• Stocks, bonds, vehicles, credit card debt

• Cash, investments, property, equipment, inventory, loans, accounts payable, mortgages

• Supplies, furniture, salaries, accounts receivable