Net Worth Is Equal to Stockholders' Equity

question 56

Multiple Choice

Net worth is equal to stockholders' equity

• A) plus dividends.
• B) minus preferred stock.
• C) plus preferred stock.
• D) minus liabilities.

---

Definitions:

Internal Users

Individuals within an organization, such as managers and employees, who use the company's financial information for decision-making.

Financial Accounting Standards Board (FASB)

An independent organization responsible for establishing and improving standards of financial accounting and reporting for the private sector in the United States.

Accounting Principles

Guidelines and rules that govern the accounting practices and procedures, ensuring accuracy and consistency in financial reporting.

Fraudulent Acts

Intentional deceptions made for personal gain or harm, involving financial transactions or manipulations.