A company's net worth is equal to which of the following?

Net worth is synonymous with owner's equity in a business context. It represents the residual interest in the assets of a company after deducting liabilities. In other words, it is what the owners of the company actually own outright. This value encompasses all assets minus all liabilities and shows the financial health of the business from the owner's perspective.

Owner's equity is essential for understanding the company's financial stability and growth potential. It can reflect how much of the company's assets are funded by the owner's contributions and profits retained in the business, as opposed to funds that have been borrowed.

Total assets represent everything the company owns, but without deducting liabilities, they do not provide a true picture of net worth. Net income reflects profitability over a specific period but does not capture the overall financial position of the company at a point in time, and working capital measures short-term financial health, which is distinct from the overall net worth of the business.