Question on: JAMB Accounting - 2024

The net worth of a business is the

A

bank loan

B

capital

C

asset

D

debenture

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Correct Option: B

The net worth of a business represents the owners’ equity and is calculated as assets minus liabilities. It reflects the capital the owners have in the business.

A bank loan and debenture are liabilities, while an asset is something owned by the business, not the net worth itself.

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