Alan has assets with a total value of $12,000. He has liabilities of $8,000. Which of the following is true?
A) Alan has a positive net worth of $20,000.
B) Alan has a negative net worth of $4,000.
C) Alan has a negative net worth of $8,000.
D) Alan has a positive net worth of $4,000.
E) Alan has a positive net worth of $12,000.
Answer: D
Explanation: D) Net worth is the difference between assets and liabilities. Alan has $4,000 in assets after subtracting his liabilities. This is a positive net worth.
Business
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