How Is the Net Worth of a Firm Calculated

question 36

Multiple Choice

How is the net worth of a firm calculated?

• A) Net worth = Current assets minus current liabilities
• B) Net worth = Total assets minus current liabilities
• C) Net worth = Total liabilities minus current assets
• D) Net worth = Total assets minus total liabilities
• E) Net worth = Total liabilities minus current liabilities

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Definitions:

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The act of predicting and preparing for potential future interactions with others.

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A communication that conveys disappointing or unfavorable information to the recipient.

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The act of accepting responsibility for a mistake or wrongdoing.