26
QuizMultiple Choice

Net Worth

Question 26 • Financial Math - MA2007 CR

Which of the following is an example of increasing both current liability and use assets?

Answer
A
paying off car loan and investing money in retirement fund
B
paying down mortgage and putting money in savings
C
selling a motorcycle to pay off a debt
D
trading in an old car for a newer car and financing the balance

Explanation

Trading in an old car for a newer car adds a use asset—the newer car—and financing the remaining cost creates a liability. The other choices pay down debt or move money into savings or investments, which do not increase both a use asset and a liability.

AI-written and checked against the verified answer.

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