Assets − Liabilities = Net WorthA) accounting formulaB) accounts receivable ratio formulaC) gross collection ratio formulaD) net collection ratio formulaE) cost ratio formulaF) assetsG) write-offsH) liabilitiesI) accounts receivableJ) income statement

Question

Zybrea Knight · Accepted Answer

Final Answer : A, Explanation :  This equation is known as the accounting formula, which is fundamental in understanding a company's financial position by calculating its net worth.

Assets − Liabilities = Net Worth

A) accounting formula
B) accounts receivable ratio formula
C) gross collection ratio formula
D) net collection ratio formula
E) cost ratio formula
F) assets
G) write-offs
H) liabilities
I) accounts receivable
J) income statement

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Learning Objectives

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