Question

Which of the following modifications to the list of assets and liabilities below would result in an increase in net worth?

Answer 1

A and d because money is coming in

Answer 2

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 = $300+28000+6000+2000=36300$ dollars.

The liabilities are :

Car loan of $22,000.

Credit card balances of $4,000.

Student loan of $10,000.

Total = $2000+4000+10000=36000$ dollars

Net worth = $36300-36000=300$ 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.