Understanding Net Worth

Question 1

Paige’s income statement for the month of December is shown. What is Paige’s net income for December?

Revolt · Accepted Answer

$950

Question 2

Colin listed his assets and liabilities on a personal balance sheet. Colin’s Balance Sheet (August 2013)AssetsLiabilitiescash$1,500credit card$500stocks$800rent$800car$5,000car loan$1,200coin collection$1,200student loan$5,000Total Total Which statement is true about the total assets and the total liabilities?

Revolt · Accepted Answer

The total of the assets is greater than the total of the liabilities.

Question 3

Rita does chores for her neighbors and makes $45 each weekend. She owes her sister $80. Rita has $178 in coins and a collection of baseball cards worth $475.Which is a liability?

Revolt · Accepted Answer

the money she owes her sister

Question 4

Carrie is creating a personal balance sheet. The heading includes the period of time that the balance sheet represents. Which could be the heading of Carrie’s balance sheet?

Revolt · Accepted Answer

Carrie’s Balance Sheet (January 1, 2021)

Question 5

Enzo’s balance sheet for the month of July is shown. Enzo’s Balance Sheet (July 2013)AssetsLiabilitiescash$600credit card$4,000investments$500student loan$2,500house$120,000mortgage$80,000car$6,000car loan$2,000Total$127,100Total$88,500Which expression finds Enzo’s net worth?

Revolt · Accepted Answer

127,100 dollars minus 88,500 dollars

Question 6

Amala listed her assets and liabilities. Credit Card BalanceCar(Paid in full)JewelryStudent LoanSavings AccountStocks$850$2,200$125$2,500$1,200$1,500What is the total of Amala’s liabilities?

Revolt · Accepted Answer

$3,350

Question 7

Tricia listed her assets and liabilities. Credit Card BillCar LoanBondsPianoBank AccountBicycleWhich are Tricia’s liabilities? Select two choices..

Revolt · Accepted Answer

credit card bill; car loan

Question 8

Anna is creating a personal balance sheet. She plans to list these items.Bank AccountJewelryHealth InsuranceRentWhich statements about the balance sheet are correct? Select three choices.

Revolt · Accepted Answer

Health insurance, and rent will be listed in the liabilities column.

Question 9

Brenda created this personal balance sheet. Brenda’s Balance Sheet AssetsLiabilitiesjewelry food wages health insurance commission rent bank account tips Total Total Brenda says her assets are definitely greater than her liabilities. Which explains whether Brenda is correct?

Revolt · Accepted Answer

Brenda is not correct because the total value of her assets could be less than the liabilities.

Question 10

Julio has a house worth $220,000. He has a $175,000 mortgage. Julio says that in this situation, his asset equity is really only $45,000. Which statement explains whether Julio is correct?

Revolt · Accepted Answer

Julio is correct because the $45,000 equity in the house is the real asset.

Understanding Net Worth Answers

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