A Decrease in Net Worth Could Be the Result Of

question 38

Multiple Choice

A decrease in net worth could be the result of:

• A)inflows exceeding outflows for a month.
• B)outflows exceeding inflows for a month.
• C)assets exceeding expenses.
• D)increased earnings on the job.
• E)inflows and outflows being equal for a month.

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Definitions:

Straight-Line Amortization

A method of evenly allocating the cost of an intangible asset over its useful life.

Callable

A term used to describe a financial security that the issuer can redeem prematurely under specific conditions.

Outstanding Debt

The total amount of borrowed money a company or individual has yet to repay to creditors.

Continuing Operations

Parts of a business expected to continue operating and contributing to revenue over the long term, as opposed to discontinued operations.