If assets total $10,000 and liabilities total $6,000, what is net worth?

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Multiple Choice

If assets total $10,000 and liabilities total $6,000, what is net worth?

Explanation:
Net worth is the difference between what you own and what you owe. With assets totaling $10,000 and liabilities totaling $6,000, subtract to get $4,000. This $4,000 represents your ownership equity—the portion of your assets left after settling all debts. If liabilities were higher than assets, net worth would be negative; if there were no liabilities, net worth would equal your total assets.

Net worth is the difference between what you own and what you owe. With assets totaling $10,000 and liabilities totaling $6,000, subtract to get $4,000. This $4,000 represents your ownership equity—the portion of your assets left after settling all debts. If liabilities were higher than assets, net worth would be negative; if there were no liabilities, net worth would equal your total assets.

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