If a person has assets worth $15,000 and liabilities totaling $5,000, what is her net worth?

Master personal finance with the DECA Personal Financial Literacy Exam. Use flashcards and multiple choice questions to deepen your understanding. Prepare for success with detailed explanations and expert tips!

Net worth is calculated by subtracting total liabilities from total assets. In this case, the person has assets valued at $15,000 and liabilities amounting to $5,000. To find the net worth, you take the total assets of $15,000 and subtract the liabilities of $5,000:

Net Worth = Assets - Liabilities

Net Worth = $15,000 - $5,000

Net Worth = $10,000

This calculation shows that the individual has a positive net worth of $10,000, reflecting the financial health of the person. The other options represent values that do not stem from the correct calculation of net worth based on the given assets and liabilities.

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