If Alex deposits $1,000 from her paycheck into her checking account and, at the same time, increases her credit card balance by $1,500, then her saving is ________, and her wealth ________.
A)+$1,000; decreases by $500
B)+$500; decreases by $1,000
C)-$500; increases by $2,500
D)-$500; decreases by $500

Question

Quizplus · Accepted Answer

The $1,000 deposit adds to assets whereas the $1,500 increase in credit card balances adds to liabilities. Thus, savings was -$500 and wealth decreased by $500.

If Alex Deposits $1,000 from Her Paycheck into Her Checking