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NECO Commerce 2023 Objective — Question 11

Question 11 of 50 from the National Examinations Council (NECO) Commerce 2023 Objective paper, with the correct answer and a full explanation.

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The excess of total assets over total liabilities of a business is known as (a) working capital (b) gross profit (c) net worth (d) net income

  • A. working capital
  • B. gross profit
  • C. net worthCorrect
  • D. net income

Explanation

Net worth (owner's equity) is calculated by subtracting total liabilities from total assets.

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