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Homework answers / question archive / If your ______, your net worth on the balance sheet would have increased from one period to the next
If your ______, your net worth on the balance sheet would have increased from one period to the next. A. Liabilities increased and assets remained constant B. Income increased C. Liabilities increased and asset decreased D. Assets increased and liabilities remain constant
D. Assets increased and liabilities remain constant.
Notes:
Net worth = total assets - total liabilities.
so, when assets increase but liabities remain the same, net worth from one period to other period will increase.
If liabilities and assets remained constant, net worth from one period to another will decrease.
Liabilities increase and asset decrease will also reduce the net worth.
