Examlex
Which of the following formulas is incorrect?
Net Worth
The total assets minus total liabilities of an individual or company, indicating the financial health or value of the entity.
Working Capital
The difference between a company's current assets and current liabilities, indicating the liquidity available to run its operations.
Covenant Compliance
Adherence to the terms and conditions specified in a debt agreement, often including financial ratios or requirements that borrowers must meet.
Accounting Principles
The standardized rules and guidelines under which financial statements are prepared, widely known as Generally Accepted Accounting Principles (GAAP).
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