Net Worth Answers

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 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 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

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.

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

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 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

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.

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 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