HORTICULTURE SCIENCE
FUNDAMENTALS OF HORTICULTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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current assets minus current liabilities
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current liabilities plus current assets
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total assets minus total liabilities
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total assets plus total liabilities
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Detailed explanation-1: -Net worth is calculated by subtracting all liabilities from assets. An asset is anything owned that has monetary value, while liabilities are obligations that deplete resources, such as loans, accounts payable (AP), and mortgages.
Detailed explanation-2: -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.
Detailed explanation-3: -A net worth statement is a financial tool that shows your financial position at a given point in time. It is like a “financial snapshot” that shows the dollar value of what you own (assets) and what you owe (liabilities or debts). This formula for calculating net worth is Assets – Liabilities = Net Worth.