suppose you walk into an electronics store and buy a brand new large - screen tv for $1,500 on credit, and…

suppose you walk into an electronics store and buy a brand new large - screen tv for $1,500 on credit, and you cant pay it all off straight away. how does this scenario affect your net worth? choose 1 answer: a increases the net worth b decreases the net worth c no change to net worth

suppose you walk into an electronics store and buy a brand new large - screen tv for $1,500 on credit, and you cant pay it all off straight away. how does this scenario affect your net worth? choose 1 answer: a increases the net worth b decreases the net worth c no change to net worth

Answer

Brief Explanations:

Net - worth is calculated as assets minus liabilities. Buying a TV on credit adds an asset (the TV) worth $1500 and also adds a liability (the credit debt) of $1500. So, the net - worth remains the same as the increase in assets is offset by the increase in liabilities.

Answer:

C. no change to net worth