Which of the following modifications to the list of assets and liabilities below would result in an increase in net worth?
2 answers:
Answer:
Option D : all of the above is the answer.
Step-by-step explanation:
Net worth = Assets - liabilities
The assets are :
Cash of $300.
Car valued at $28,000.
Motorcycle valued at $6,000.
Savings of $2,000.
Total = dollars.
The liabilities are :
Car loan of $22,000.
Credit card balances of $4,000.
Student loan of $10,000.
Total = dollars
Net worth = dollars
So, if we put $100 in savings it will increase the net worth by $100 as it is an asset.
If we pay $100 on credit cards, it will also lower the liability by $100 and increase the net worth by $100.
And if you are getting paid $100, its an asset, so your net worth increases.
Therefore, option D : all of the above is the answer.
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