If Your ____,Your Net Worth on the Personal Balance Sheet

question 5

Multiple Choice

If your ____,your net worth on the personal balance sheet would have increased from one period to the next.

• A)liabilities increased and assets remained constant
• B)liabilities increased and assets decreased
• C)assets increased and liabilities remained constant
• D)income increased
• E)none of these

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Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered or refunded.

Incremental Cash Flows

The extra cash flow an organization gains by initiating a new project.

Total Cash Flows

The aggregate sum of cash entering and leaving a corporation, which plays a significant role in determining its financial fluidity.

Income Taxes

Taxes levied on both earned income (wages, salaries) and unearned income (dividends, interest), imposed by government authorities.