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How do you calculate a net worth statement?

Question 1 options:


a. Assets / Liabilities


b. Assets + Liabilities


c. Assets x Liabilities


d. Assets - Liabilities

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User Pbachman
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1 Answer

2 votes

Answer:

d. Assets - Liabilities

Explanation:

A net worth statement shows you a combination of the assets you own and the liabilities or debts that you owe. Assets include your car, market value of your home, art, cash in your bank account etc.

Liabilities on the other hand are basically all debts you owe. This includes student loans, credit card debt, mortgage, auto loans etc.

The difference between your total assets and your total liabilities will give you a statement of your net worth. This helps you understand your current financial situation and keep track of whether you are heading toward your financial goals.

answered
User Adana
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