The correct option is D. Net worth includes both assets and liabilities. The value of all assets less than the sum of all obligations is what is known as net worth. In other words, net worth is the sum of all assets minus all liabilities. Your net worth can be calculated with this tool. Additionally, it predicts potential changes in net worth over the following ten years
What is the role of net worth?
Your net worth is a reliable predictor of your financial well-being because it reveals whether your total assets are worth more or less than the sum of your liabilities. When making financial decisions like buying a home or business or developing a retirement plan, net worth can be a crucial indicator.
Your net worth is calculated as the sum of all of your assets less all of your obligations. In other words, it is all you own less everything you owe. You have a negative net worth if you owe more money than you own. You will have a positive net worth if your assets exceed your liabilities.
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