Net Worth Answers

Which of the following is an example of increasing both current liability and use assets?a.paying off car loan and investing money in retirement fundb.paying down mortgage and putting money in savingsc.selling a motorcycle to pay off a debtd.trading in an old car for a newer car and financing the balance

The Worthingtons love to travel, so when they retired they sold their house and purchased a motor home valued at $165,000. They tow their car, valued at $32,000 behind their motor home when they travel. The Worthingtons have medical bills totaling $1,300 and a balance of $3,000 on credit cards. Since they invested for retirement, the Worthingtons have $200,000 in investments and an additional $20,000 in their savings account. What is the Worthingtons’ net worth?a.$411,700b.$412,700c.$413,700d.$414,700

The car owned by a person is part of his or her ____.a.investment assetsb.liquid assetsc.long term assetsd.use assets

The Roth family has liquid assets of $10,000, use assets of $150,000 and investment assets of $34,000. They also have liabilities totaling $108,000. If their total liabilities increase by $7,000 over the next year, by how much would the Roth family need to increase their assets in order to have a net worth of $100,000?a.$7,000b.$14,000c.$21,000d.$28,000

The amount of money in a savings account is an example of which of the following?a.investment assetb.liquid assetc.long term assetd.use asset

Which of the following modifications to the list of assets and liabilities below would result in a net worth of $100,000?Recreational Vehicle valued at $110,000.Car valued at $27,000.Medical bills totaling $8,700.Loan balance of $80,000.Savings of $5,000.Retirement fund of $50,000.Credit card balance of $2,300.a.recreational vehicle value decreasing to $100,000b.borrowing $10,000 more in loansc.withdrawing $20,000 from the retirement fundd.adding $1,000 in credit card debt

The Worthingtons love to travel, so when they retired they sold their house and purchased a motor home valued at $165,000. They tow their car, valued at $32,000 behind their motor home when they travel. The Worthingtons have medical bills totaling $1,300 and a balance of $3,000 on credit cards. Since they invested for retirement, the Worthingtons have $200,000 in investments and an additional $20,000 in their savings account. What is the Worthingtons’ net worth?a.$411,700b.$412,700c.$413,700d.$414,700

Which of the following increases liabilities but not assets?a.Taking out a loan to buy a new carb.Taking out a loan to go on vacationc.Using a credit card to buy a computerd.Paying off a student loan

What does a negative net worth indicate?a.Your assets exceed your liabilities.b.Your assets equal your liabilities.c.Your liabilities exceed your assets.d.You have only assets and no liabilities.

Mr. Chavez has assets of $250,000 and liabilities of $18,000. He decides to finance the entire amount of the purchase of a car valued at $26,000. Which of the following is true?a.Mr. Chavez increased his assets.b.Mr. Chavez increased his net worth.c.Mr. Chavez increased both his assets and net worth.d.Mr. Chavez did not increase his assets or his net worth.

Which of the following could be true if one decreases their long term liability and increases their liquid assets?a.Paid off credit card balance and added money to savings.b.Paid off medical bills and invested money. c.Paid down mortgage and received a cash prize.d.Paid taxes owed and bought a car.

The following table shows the assets and liabilities of the Chang family in 2007 and 2008.20072008home valued at $315,000home valued at $325,000mortgage of $265,000mortgage of $240,000car valued at $10,000car valued at $6,000car loan of $5,000car loan of $1,000savings of $2,000credit card debt of $1,500Based on the table, which of the following is true?a.From 2007 to 2008, both assets and liabilities decreased.b.From 2007 to 2008, both assets and liabilities increased.c.From 2007 to 2008, assets decreased and liabilities increased.d.From 2007 to 2008, assets increased and liabilities decreased.

Over the period of a year, Julie’s net worth decreased. Which of the following could be true?a.Julie’s assets and liabilities decreased by the same amount.b.Julie’s assets and liabilities increased by the same amount.c.Julie’s assets increased by more than her liabilities.d.Julie’s assets decreased by more than her liabilities.

Which of the following is a liability?a.bonus paycheckb.credit card balancec.investment fundd.savings account

The car owned by a person is part of his or her ____.a.investment assetsb.liquid assetsc.long term assetsd.use assets

What is the difference between assets and liquid assets?a.All assets represent money, but only liquid assets can be easily turned into spendable money and used to pay debts.b.An asset represents a credit or a positive value, while a liquid asset represents a debit or a negative value.c.Assets are money gained from your job, while liquid assets are money gained from sources such as investments or inheritances.d.An asset is owned by you alone, while a liquid asset is shared among several people, such as a married couple or a group of investors.

Which of the following modifications to the list of assets and liabilities below would result in a positive net worth?Home owned $105,000.Mortgage owed $100,000.Car valued at $26,000.Car loan of $22,000.Investment fund of $4,500.Savings of $1,500.Credit card balance of $15,000.a.Lowering mortgage by $1,000.b.Increasing investment fund by $500.c.Adding $100 to savings.d.All of the above.

Which of the following is a liability?a.bonus paycheckb.credit card balancec.investment fundd.savings account

Which of the following modifications to the list of assets and liabilities below would result in a net worth of $100,000?Recreational Vehicle valued at $110,000.Car valued at $27,000.Medical bills totaling $8,700.Loan balance of $80,000.Savings of $5,000.Retirement fund of $50,000.Credit card balance of $2,300.a.recreational vehicle value decreasing to $100,000b.borrowing $10,000 more in loansc.withdrawing $20,000 from the retirement fundd.adding $1,000 in credit card debt

Over the period of a year, Julie’s net worth decreased. Which of the following could be true?a.Julie’s assets and liabilities decreased by the same amount.b.Julie’s assets and liabilities increased by the same amount.c.Julie’s assets increased by more than her liabilities.d.Julie’s assets decreased by more than her liabilities.

The Svensons find a refrigerator valued at $2,300 on sale for $1,900. They decided to withdraw $500 from savings to use as a down payment on the purchase of the refrigerator and took out a loan to pay the balance. Choose the true statement. a. The Svensons’ assets increased by $1,400. b. The Svensons’ assets increased by $1,800. c. The Svensons’ assets increased by $1,900. d. The Svensons’ assets increased by $2,300. Please select the best answer from the choices provided

Which of the following is an example of increasing both current liability and use assets?a.paying off car loan and investing money in retirement fundb.paying down mortgage and putting money in savingsc.selling a motorcycle to pay off a debtd.trading in an old car for a newer car and financing the balance

The Svensons find a refrigerator valued at $2,300 on sale for $1,900. They decided to withdraw $500 from savings to use as a down payment on the purchase of the refrigerator and took out a loan to pay the balance. Choose the true statement. a. The Svensons’ assets increased by $1,400. b. The Svensons’ assets increased by $1,800. c. The Svensons’ assets increased by $1,900. d. The Svensons’ assets increased by $2,300. Please select the best answer from the choices provided

The following table shows the assets and liabilities of the Chang family in 2007 and 2008.20072008home valued at $315,000home valued at $325,000mortgage of $265,000mortgage of $240,000car valued at $10,000car valued at $6,000car loan of $5,000car loan of $1,000savings of $2,000credit card debt of $1,500Based on the table, which of the following is true?a.From 2007 to 2008, both assets and liabilities decreased.b.From 2007 to 2008, both assets and liabilities increased.c.From 2007 to 2008, assets decreased and liabilities increased.d.From 2007 to 2008, assets increased and liabilities decreased.

Which of the following could be true if one decreases their long term liability and increases their liquid assets?a.Paid off credit card balance and added money to savings.b.Paid off medical bills and invested money. c.Paid down mortgage and received a cash prize.d.Paid taxes owed and bought a car.

What does a negative net worth indicate?a.Your assets exceed your liabilities.b.Your assets equal your liabilities.c.Your liabilities exceed your assets.d.You have only assets and no liabilities.

In order to reduce their debt, the Johnsons sold some real estate property valued at $165,000 for $143,000. They paid off a loan balance of $100,000 and put the rest in savings. Which of the following is a true statement?a.The Johnsons increased their liabilities.b.The Johnsons increased their liquid assets.c.The Johnsons increased their net worth.d.The Johnsons increased their use assets.