"Net worth" consists of which of the following?
A) savings and personal property, minus home equity
B) the value of home equity, minus any debt
C) real estate, savings, and personal property, minus any debt
D) real estate, savings, and personal property, including any debt
E) none of these

Question

Quizplus · Accepted Answer

Net worth is the difference between assets (real estate, savings, and personal property) and liabilities (debt). Therefore, option C best describes it since it includes all of these elements. Option A subtracts home equity, which is an asset, while option B only considers home equity and ignores other assets. Option D includes debt, which should be subtracted from assets to arrive at net worth. Option E is incorrect as one of the options mentioned is correct.

"Net Worth" Consists of Which of the Following