Question

Select all of the steps for calculating net worth. select all that apply
List your assets.
Total your assets.
List the names of your credit cards.
Total your liabilities.
List your liabilities.
Subtract your liabilities from your assets.
Add your liabilities and your assets.

Answer 1

-List your assets.

-List your liabilities

-Subtract your liabilities from your assets.

Answer 2

Answer:

List your assets.

Total your assets.

List your liabilities.

Total your liabilities.

Subtract your liabilities from your assets.

Explanation:

Assets are the resources owned by a person as a result of past events for which future economic benefits are expected to flow to that person or entity. Such includes Cash, Receivables, Inventory, Fixed assets etc

A liability on the other hand is an obligation expected of a person as a result of a past event, for which future economic benefits are expected to flow out of the entity or person. Examples of these are Payable, loans, accrued expenses etc

The total assets is value of resources owned by an entity while total liabilities is the value of resources owed hence a net off between both items give the net worth of a person. As such to compute net worth, List your assets, Total your assets, List your liabilities, Total your liabilities and Subtract your liabilities from your assets.