[amp_mcq option1=”equity capital” option2=”total assets” option3=”fixed assets – current assets” option4=”total assets – total external liabilities” correct=”option4″]<\/p>\n
The correct answer is: D. total assets – total external liabilities<\/strong><\/p>\n Net worth is the difference between a company’s total assets and its total external liabilities. It is also known as shareholders’ equity or book value. Net worth is a measure of a company’s financial health and is used to calculate a number of financial ratios, such as the debt-to-equity ratio.<\/p>\n A company’s assets are the things it owns that have value, such as cash, inventory, and equipment. A company’s liabilities are the things it owes, such as accounts payable and long-term debt. A company’s net worth is calculated by subtracting its liabilities from its assets.<\/p>\n For example, if a company has $100,000 in assets and $50,000 in liabilities, its net worth would be $50,000.<\/p>\n Net worth is an important measure of a company’s financial health because it shows how much money the company would have left over if it were to sell all of its assets and pay off all of its liabilities. A company with a high net worth is generally considered to be financially healthy, while a company with a low net worth may be in financial difficulty.<\/p>\n Here is a brief explanation of each option:<\/p>\n I hope this helps! Let me know if you have any other questions.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”equity capital” option2=”total assets” option3=”fixed assets – current assets” option4=”total assets – total external liabilities” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-52009","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n\n