Which of the Following Statements Is True About Net Worth

question 76

Multiple Choice

Which of the following statements is true about net worth?

• A)A firm's net worth should be higher than the stockholders' equity.
• B)A firm's net worth should be equal to 50 percent of the value of the total assets of the firm.
• C)A firm's net worth is equal to total assets minus total liabilities.
• D)A firm's net worth is the amount that the firm's assets can generate on their liquidation.
• E)A firm's net worth is the amount to be paid by the shareholders to the firm on liquidation of the firm.

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Definitions:

Proposition

The meaning or content of a statement.

Identical Sentences

Sentences that are exactly the same in both form and content.

Express

To convey a thought or feeling in words or by gestures and conduct.

Empire State Building

A landmark 102-story Art Deco skyscraper in New York City, once the tallest building in the world.