Net Worth can be defined as:

Question

BlackTom AI · Accepted Answer

To begin untangling the concept, we analyze what 'Net Worth' represents in financial terms.
Option a: Sales Revenue. This is the total amount earned from selling goods or services before expenses, not the owner's overall financial position. Net worth is not about income flow, but about a stock at a point in time, so this is not correct.
Option b: Liabilities. Liabilities are obligations or debts owed to others. They are a component of net worth (net worth = assets minus liabilities) but by themselves they do not define net worth. Therefore this choice is incomplete and misleading as a definition.
Option c: Wealth. Wealth captures the notion of the total value of what one owns after liabilities are considered, i.e., net worth. In many contexts, wealth is used interchangeably with the concept of net worth as the residual value after obligations are subtracted from assets. This aligns with the standard definition.
Option d: Net Income. Net income reflects the profitability over a period (revenue minus expenses), not the overall value of an entity at a moment in time. It does not define net worth, so this option is incorrect.
In summary, the correct framing is that net worth corresponds to the accumulated wealth after accounting for liabilities, which matches option c. The other options describe separate financial measures (revenue, liabilities alone, and income) that do not by themselves define net worth.

Net Worth can be defined as:

查看解析

登录即可查看完整答案

类似问题

Your financial net worth is a comparison of what you own to what you owe – just like a business balance sheet.

Which of the following statements is/are correct? Net worth represents the personal equity that the individual has in his assets and can never be less than zero. If Lisa purchased a car using 30% cash and 70% debt, her net worth would increase by 30%.

Net Worth can be defined as:

Net Worth can be defined as:

Question at position 14 The Real World Application for Module 2 on Emma Chamberlain states that her estimated net worth by age 22 was: $8 million$12 million$15 million$10 million

Question at position 1 The Real World Application for Module 2 on Emma Chamberlain states that her estimated net worth by age 22 was:$12 million $8 million$15 million$10 million

Which of the following would cause an immediate decrease in your net worth?

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单