In the balance sheet, a(n) ________ in assets ________ net worth.
A) increase; increases
B) decrease; increases
C) decrease; decreases
D) Both A and C are correct

Question

Quizplus · Accepted Answer

An increase in assets, assuming liabilities remain constant, increases net worth because assets minus liabilities equals net worth. Conversely, a decrease in assets, with constant liabilities, decreases net worth.

In the Balance Sheet, A(n) ________ in Assets ________ Net

In the Balance Sheet, A(n) in Assets Net