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The excess of the assets over the liabilities of a business is called?

The excess of the assets over the liabilities of a business is called?

  • A.
    working capital
  • B.
    net worth
  • C.
    capital employed
  • D.
    initial capital
Correct Answer: Option C
Explanation

The excess of total assets over total liabilities is called net assets and is equivalent to total equity or owner’s equity.