Why is a net worth statement needed?
A)To determine your net cash flow on an annual basis
B)To measure your cash accumulation
C)To measure the value of your assets minus debts
D)To measure expenses and develop priorities

Question

Quizplus · Accepted Answer

A net worth statement is used to measure the value of your assets minus debts. It provides a snapshot of your financial situation and can help you track your progress towards financial goals. It is commonly used to help individuals understand their overall financial health, make informed financial decisions, and plan for the future. Options A, B, and D are not accurate descriptions of the purpose of a net worth statement.

Why Is a Net Worth Statement Needed