A firm's current assets equal $40,000;its fixed assets are $200,000;its current liabilities are $20,000;and its fixed liabilities are $80,000.What is its net worth?
A)$40,000
B)$60,000
C)$140,000
D)$240,000

Question

Quizplus · Accepted Answer

Net worth (also known as shareholder's equity or owner's equity) is calculated by subtracting total liabilities from total assets. 
Net worth = Total assets - Total liabilities 
Net worth = (Current assets + Fixed assets) - (Current liabilities + Fixed liabilities) 
Net worth = ($40,000 + $200,000) - ($20,000 + $80,000) 
Net worth = $240,000 - $100,000 
Net worth = $140,000 
Therefore, the correct answer is C) $140,000.

A Firm's Current Assets Equal $40,000;its Fixed Assets Are $200,000;its