Net Worth Is the Difference Between a Firm's Assets and Its

question 76

True/False

Net worth is the difference between a firm's assets and its liabilities.

---

Definitions:

Ordinary Gains

Profits resulting from the sale of assets used in a business's normal operations, subject to regular income tax rates.

Troubled Debt Restructuring

A process where terms of a debt are modified due to the debtor's financial difficulties, often involving a reduction in interest rate or principal owed.

Settlement

The process of resolving a transaction, including the transfer of funds and securities.

Non-interest-bearing Note

A promissory note with no stated interest rate, where the interest is typically implied and calculated based on the difference between the face value and the cash received.