The correct answer is: A. asset net of liabilities.
Net worth is the total value of your assets minus the total value of your liabilities. It is also known as equity or net asset value.
Assets are things you own that have value, such as cash, property, investments, and personal belongings. Liabilities are debts you owe, such as credit card debt, student loans, and mortgages.
To calculate your net worth, simply subtract your total liabilities from your total assets. For example, if you have $100,000 in assets and $50,000 in liabilities, your net worth would be $50,000.
Net worth is an important measure of your financial health. It can help you determine your financial security and your ability to borrow money. It can also be used to track your progress towards financial goals, such as saving for retirement or buying a home.
Here is a brief explanation of each option:
- Option A: asset net of liabilities. This is the correct answer. Net worth is the total value of your assets minus the total value of your liabilities.
- Option B: liabilities net of assets. This is incorrect. Net worth is the total value of your assets minus the total value of your liabilities, not the other way around.
- Option C: earnings net on assets. This is incorrect. Earnings are income, not assets.
- Option D: liabilities net of earnings. This is incorrect. Liabilities are debts, not earnings.