which of the following is equal to total assets minus total liabilities?\nequity\nnet worth\nincome
which of the following is equal to total assets minus total liabilities?\nequity\nnet worth\nincome
Answer
Brief Explanations:
In accounting (a subfield of Business), the fundamental accounting equation is Assets = Liabilities + Equity (or Net Worth). Rearranging this, Equity (or Net Worth) = Assets - Liabilities. Income is related to revenue and expenses over a period, not the difference between assets and liabilities. So both equity and net worth represent total assets minus total liabilities.
Answer:
A. equity, B. net worth