Which of the Following Mathematical Expressions Computes the Net Worth

question 105

Multiple Choice

Which of the following mathematical expressions computes the net worth of a firm?

• 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:

Electricity

A form of energy resulting from the existence of charged particles such as electrons or protons, either statically as an accumulation of charge or dynamically as a current.

Expansion

A phase in the business cycle where economic activity is increasing, characterized by higher output, employment, and trade.

Time Period

A specific duration or interval of time, often used in the context of analysis, planning, or measurement within various fields including finance and economics.

Recession

A period of temporary economic decline during which trade and industrial activities are reduced, typically recognized by a fall in GDP in two consecutive quarters.