What is the term for the total assets minus total liabilities?

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Multiple Choice

What is the term for the total assets minus total liabilities?

The amount you get when you subtract all liabilities from all assets is the net worth. This residual represents the owners’ claim on the assets after debts are paid. In accounting terms, assets minus liabilities equals equity, and net worth is the common way to describe that residual value in personal or fund contexts. So, subtracting liabilities from assets yields net worth.

The amount you get when you subtract all liabilities from all assets is the net worth. This residual represents the owners’ claim on the assets after debts are paid. In accounting terms, assets minus liabilities equals equity, and net worth is the common way to describe that residual value in personal or fund contexts. So, subtracting liabilities from assets yields net worth.

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