Question

When Angela calculated her net worth; she got this: Net Worth = $435 - $560 = - $125. What does her negative net worth mean?

Answer 1

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.