Final answer:
The correct answer is option C) Equal and undivided ownership.
Step-by-step explanation:
In a JTWRoS account, which stands for Joint Tenancy with Right of Survivorship, ownership of assets is shared equally among the co-owners. This means that each party has equal and undivided ownership of the assets regardless of their contribution to the initial investment or how the market values fluctuate. In the context provided, if two individuals hold $100,000 in a JTWRoS account, they would each have equal rights to the entire $100,000 should anything happen to the other; the account does not recognize individual percentages or investment proportions in the day-to-day sense.
Understanding how assets and liabilities work together is fundamental in business accounting. For instance, a bank's assets would include reserves and loans, which can be seen on the left side of a T-account, with liabilities on the right side, including deposits and equity. Ultimately, a firm's net worth is calculated as total assets minus total liabilities and is listed on the liabilities side to balance a T-account to zero. Healthy businesses have a positive net worth, while bankrupt firms have negative net worth.