A Family with $50,000 in Assets and $22,000 of Liabilities

question 105

Multiple Choice

A family with $50,000 in assets and $22,000 of liabilities would have a net worth of:

• A)$50,000.
• B)$28,000.
• C)$22,000.
• D)$67,000.
• E)$41,000.

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Definitions:

Liquidating Dividend

A payment made by a corporation to its shareholders from its capital rather than its earnings, often signaling the winding down or dissolution of the company.

Cash Payment

A transaction in which goods or services are paid for with physical currency or through an immediate electronic funds transfer.

Firm's Assets

The economic resources owned by a business, including cash, property, equipment, and intellectual property, which are used to generate revenue.

Stock Split

A business procedure in which a corporation splits its current shares into more shares to increase the shares' marketability.