Asked by Peter Shibia on Jul 16, 2024
Verified
Wealth or net worth is equal to
A) assets plus liabilities.
B) assets minus liabilities.
C) consumption plus changes in net worth.
D) income minus savings.
Net Worth
The total value of all assets owned by an individual or organization minus any liabilities or debts.
Assets
Economic resources owned or controlled by an individual or a business, which are expected to provide future benefits.
Liabilities
Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.
- Explain the concept of economic income and how it is calculated.
- Calculate net worth based on assets and liabilities.
Verified Answer
DS
Daniel SwindellJul 23, 2024
Final Answer :
B
Explanation :
Wealth or net worth is calculated as assets minus liabilities. This means the total value of everything you own (assets) minus what you owe (liabilities).
Learning Objectives
- Explain the concept of economic income and how it is calculated.
- Calculate net worth based on assets and liabilities.