The personal balance sheet equation is
A)Total Assets / Total Liabilities = Net Worth.
B)Total Assets × Total Liabilities = Net Worth.
C)Total Assets − Total Liabilities = Net Worth.
D)Total Assets + Total Liabilities = Net Worth.
E)Total Liabilities − Total Assets = Net Worth.

Question

Quizplus · Accepted Answer

The correct personal balance sheet equation is Total Assets - Total Liabilities = Net Worth. This is because the total assets are equal to the sum of liabilities and net worth, and when we subtract liabilities from assets, we get the net worth of an individual.

The Personal Balance Sheet Equation Is