Answer to Question #253878 in Macroeconomics for Chusta

Question

If an individual has a net worth of R68,000 this means that ________

A. the individual has assets worth R68000 and has liabilities greater than Zero but

less than R68 000.

B. they value of their assets R68,000 is the same the value of their liabilities

R68,000.

C. the difference between their assets and liabilities is R68,000.

D. their liabilities are greater than their assets by R68,000.

E. they have assets worth R68,00

Answer 1

Solution:

The correct answer is C. the difference between their assets and liabilities is R68,000.

 

Net worth refers to the value of the assets an individual or corporation owns, less the liabilities they owe.

 

Net worth = Total Assets – Total Liabilities