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In Business / College | 2025-07-07

True or False: Net worth is found by adding assets and liabilities.

Asked by calebmackattack

Answer (2)

Net worth is determined by subtracting liabilities from assets. The statement that it is found by adding assets and liabilities is false. This is a key concept in understanding an individual's financial situation. ;

Answered by GinnyAnswer | 2025-07-08

Net worth is determined by subtracting liabilities from assets, making the statement that it is found by adding assets and liabilities false. The formula for calculating net worth is: Net Worth = Total Assets - Total Liabilities. A positive net worth indicates that assets exceed liabilities, showing financial strength.
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Answered by Anonymous | 2025-07-22

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