BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Subtracting total liabilities from total assets
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Subtracting total assets from total liabilities
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Totaling the purchase prices of all items a person owns
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Adding total assets and total liabilities
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Detailed explanation-1: -To calculate your net worth, subtract any debts and liabilities from the total value of your assets. In other words, subtract what you owe from what you own.
Detailed explanation-2: -How Do I Calculate My Net Worth? To calculate your net worth, you subtract your total liabilities from your total assets. Total assets will include your investments, savings, cash deposits, and any equity that you have in a home, car, or other similar assets.
Detailed explanation-3: -Owner’s equity, net worth, or capital is the total value of assets that you own minus your total liabilities. To put it another way, owner’s equity plus liabilities equal assets. Accounts representing these three items will make up your company’s financial statements.