Which of the Following Statements Is True About Net Worth

Multiple Choice

Which of the following statements is true about net worth?

A) A firm's net worth should be higher than the stockholders' equity.
B) A firm's net worth should be equal to 50 percent of the value of the total assets of the firm.
C) A firm's net worth is equal to total assets minus total liabilities.
D) On liquidation of a firm, the common stockholders' will receive the exact amount shown in the equity section of the balance sheet.
E) The net worth of a firm is the amount to be paid by the shareholders to the firm on liquidation of the firm.