When Angela calculated her net worth; she got this: Net Worth = $435 - $560 = - $125. What does her negative net worth mean?
1 answer:
Answer:
The negative net worth mean her liabilities are larger than her assets.
Step-by-step explanation:
- Angela's calculation of net worth:
Net Worth = $435 - $560 = - $125
- Net worth is the difference in assets and debt. If the net worth is negative it means that debt is greater than assets.
- The same thing is in Angela's case. Her debt or liability is greater than total assets hence making her net worth negative.
- Her liability is still $125 greater than all of her assets added upon.
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