- 1 Marks
Question
Which of the following defines the net worth of a company?
A. Equity interest
B. Non-current assets less current assets
C. Non-current assets and current liabilities
D. Changes in the loan notes
E. Non-current assets and intangible assets
Answer
A. Equity interest
Explanation:
The correct answer is A because net worth refers to the residual interest in the assets of the entity after deducting liabilities, which is synonymous with equity interest.
- Topic: Elements of Financial Statements
- Series: NOV 2012
- Uploader: Theophilus