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

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

Question

Social Studies

Tiffany Jones

26 October, 02:26

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

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

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Answers (1)

Know the Answer?

Orion Howell · Answer 1

I believe the answer is: c. Sam’s assets increased by more than his liabilities.

A net worth represent the amount of financial value that a person have after removing all of his/her debt out of the equation.

A net worth is calculated by counting total assets - Total liabilities.

For a net worth to be increased, the only way possible is to increase the assets more than the liabilities.