Question

How to calculate liabilities when net worth is given(-5000) and the assets($8000)
as given as well

Answer 1

To calculate liabilities when the net worth and assets are given, you can use the formula:

Liabilities = Assets - Net Worth

Given:
Net Worth = -5000
Assets = 8000

Liabilities = 8000 - (-5000)
Liabilities = 8000 + 5000
Liabilities = 13000

Therefore, liabilities amount to $13,000.