What does a negative net worth indicate?

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.

Please select the best answer from the choices provided.

Question

08-08-2024
Business

Answered

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What does a negative net worth indicate?

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.

Please select the best answer from the choices provided.

Sagot :

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GinnyAnsweridn GinnyAnsweridn · Answer 1 · 2024-08-08T17:10:29-04:00

Final answer:

A negative net worth suggests that liabilities exceed assets, showcasing financial imbalance.

Explanation:

A negative net worth indicates that your liabilities exceed your assets. In financial terms, net worth is calculated by subtracting liabilities from assets. Therefore, if your net worth is negative, it means that you owe more than you own, which is an indication of financial imbalance.

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