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:

Median

The middle value in a data set, which separates the higher half from the lower half.

American Kennel Club

A registry of purebred dog pedigrees in the United States, also known for promoting and sanctioning events for purebred dogs.

Absolute Frequency

The total count of occurrences or instances of a particular event or characteristic in a given dataset.

Ratio

A quantitative relationship between two numbers showing the number of times one value contains or is contained within the other.