Asked by Gabby Homant on Jun 03, 2024
Verified
Assets − Liabilities = Net Worth
A) accounting formula
B) accounts receivable ratio formula
C) gross collection ratio formula
D) net collection ratio formula
E) cost ratio formula
F) assets
G) write-offs
H) liabilities
I) accounts receivable
J) income statement
Accounting Formula
The formula that is considered the basis for all financial accounting, which is assets minus liabilities equals net worth.
Net Worth
The total value of an individual's or entity's assets minus liabilities, representing financial health.
- Employ financial equations to evaluate the fiscal health and productivity of a company.
Verified Answer
ZK
Zybrea KnightJun 10, 2024
Final Answer :
A
Explanation :
This equation is known as the accounting formula, which is fundamental in understanding a company's financial position by calculating its net worth.
Learning Objectives
- Employ financial equations to evaluate the fiscal health and productivity of a company.