Asset, Liability, Net Worth Multiple Choice Questions

What is the total value of assets based on the given information?

• $116,000

• $212,000

• $109,000

• $204,500

What is the total value of liabilities based on the given information?

• $25,950

• $18,000

• $6,450

• $24,000

What is the net worth?

• $186,550

• $189,500

• $177,000

• $186,050

Which of the following is considered an asset?

• Credit card balance

• Retirement account

• Mortgage balance

• Student loan

Which of the following is considered a liability?

• Checking account balance

• Emergency savings

• Car value

• Credit card debt

If the house value increased to $120,000, how would this affect net worth?

• Decrease net worth by $20,000

• Increase net worth by $20,000

• No effect on net worth

• Increase liabilities by $20,000

Which of the following statements is true?

• Net worth is calculated by subtracting total liabilities from total assets.

• Rental income is considered a liability.

• The amount in a checking account is not considered an asset.

• Credit card debt does not affect net worth.

If the furniture loan was paid off completely, how would net worth change?

• Increase by $450

• Decrease by $450

• Increase by $1,500

• No change

What is the total value of liquid assets (cash, checking, and emergency savings)?

• $18,000

• $15,500

• $17,500

• $19,000

If the mortgage was paid off completely, what would the new net worth be?

• $186,550

• $204,050

• $211,000

• $218,000