24
QuizMultiple Choice

Topic Test

Question 24 • Financial Math - MA2007 CR

Over the period of a year, Sam’s net worth increased. Which of the following could be true?

Answer
A
Sam’s assets and liabilities decreased by the same amount.
B
Sam’s assets and liabilities increased by the same amount.
C
Sam’s assets increased by more than his liabilities.
D
Sam’s assets decreased by more than his liabilities.

Explanation

Net worth equals assets minus liabilities. For net worth to increase, assets must rise more than liabilities, or liabilities must fall more than assets. Choice C, “Sam’s assets increased by more than his liabilities,” would make the difference larger. Choices A and B leave the difference unchanged, while D would reduce it.

AI-written and checked against the verified answer.

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