Wealth or Net Worth Is Equal to

question 130

Multiple Choice

Wealth or net worth is equal to

• A) assets plus liabilities.
• B) assets minus liabilities.
• C) consumption plus changes in net worth.
• D) income minus savings.

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Definitions:

Bank Reconciliation

is the process of matching the balances in an entity’s accounting records for a cash account to the corresponding information on a bank statement, to ensure records are consistent.

Notes Receivable

A written promise that obligates a borrower to repay a specific amount of money, with or without interest, to a lender at a future date or on demand.

Interest Revenue

Income a company earns from its cash deposits, investments, or other interest-bearing accounts.

Miscellaneous Income

Income from non-core business activities that do not fit into other income categories, often irregular or infrequent.