Asked by Briana Goins on Jul 31, 2024
Verified
Net worth is the difference between a person's assets and their liabilities.Net worth can be a positive number or a negative number.
Net Worth
The difference between a person’s assets (what is owned) and that person’s liabilities (what is owed).
Liabilities
Financial obligations or debts that a company or individual owes to others.
- Calculate net worth and understand its importance in personal financial planning.
Verified Answer
EH
Elias HerreraAug 07, 2024
Final Answer :
True
Explanation :
This statement is true. Net worth is calculated by subtracting a person's liabilities from their assets. If the result is a positive number, it means they have more assets than liabilities and a positive net worth. If the result is a negative number, it means they have more liabilities than assets and a negative net worth.
Learning Objectives
- Calculate net worth and understand its importance in personal financial planning.