Your net worth can change even if your net cash flows are zero.

Name: Your net worth can change even if your net cash flows are zero.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Net worth is determined by the total value of your assets minus the total value of your liabilities. Even if your net cash flows are zero, changes in the value of your assets or liabilities (such as property value increases or decreases, investment value changes, or changes in debt levels) can alter your net worth.

Your Net Worth Can Change Even If Your Net Cash