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1 FINANCE MCQS

The position created when assets are greater than liabilities is called ____________?

  • Net long in currency
  • Net short in currency
  • Net surplus in assets
  • Net surplus in liabilities
Correct Answer: C. Net surplus in assets

Detailed Explanation

When a company or individual holds assets that exceed their liabilities, it creates a net surplus in assets. This position indicates financial strength and a positive net worth, showing that the entity has more resources than obligations to creditors.

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