12
QuizMultiple Choice

Net Worth

Question 12 • 26-27 RPA Financial Math - MA2007 IC

What does a negative net worth indicate?

Answer
A
Your assets exceed your liabilities.
B
Your assets equal your liabilities.
C
Your liabilities exceed your assets.
D
You have only assets and no liabilities.

Explanation

Net worth is calculated by subtracting liabilities from assets. If the result is negative, liabilities are greater than assets. Therefore, the correct choice is “Your liabilities exceed your assets.”

AI-written and checked against the verified answer.

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