Question

An individual has total assets of 120,000 and total liabilities of 80,000. what is his net worth?

Answer 1

40,000

Step-by-step explanation:

Net worth is the value of a person or a firm's assets minus the liabilities. It is the net value of all the assets owned by an individual or organization. Calculation of net worth is by deducting liabilities from assets,

i.e., Asset - liabilities.

For this individual, net worth will be

=120,000 - 80,000

=40,000