Scan QR code or get instant email to install app
Question:
We define a company's Net Worth as its assets minus liabilities. Assets are all things of value that may be converted into cash whereas liabilities are the company's total of debts. Now the XY Association went bankrupt while it had $28.6 billion in assets and $26 billion in liabilities. What was the XY Association's net worth before it went bankrupt?
A
$2.6 billion.
explanation
To find the net worth, subtract the debts from the assets. Your answer should be in the billions.
Net Worth = Assets − Liabilities
= 28.6 − 26
= 2.6
Therefore, the XY Association had a net worth of $2.6 billion.
Take more free practice tests for other GED topics with our ged online now!
Related Information
Comments