A Person with $80,000in Assets and $122,000 of Liabilities Would

question 15

Multiple Choice

A person with $80,000in assets and $122,000 of liabilities would have a net worth of:

• A)$80,000.
• B)$122,000.
• C)$202,000
• D)$42,000.
• E)- $42,000.

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Definitions:

Cash

The most liquid asset, representing currency or its equivalent that can be accessed immediately or near-immediately.

Interest-Bearing Note

A debt instrument where the borrower pays the lender interest over the life of the note, in addition to repaying the principal amount.

Long-Term Debt

Borrowings of a business that are due for repayment more than one year in the future.

Sales Tax Rate

The percentage of sales price that is added to the price of goods and services sold, collected by the seller and remitted to a governmental tax authority.