Which of the following does not increase your net worth?
A) An increase in your retirement balance
B) An increase in your home value
C) An increase in your mutual funds
D) The purchase of a new car

Question

Quizplus · Accepted Answer

Net worth is calculated by subtracting liabilities from assets. While increases in retirement balances, home values, and mutual funds directly increase your assets (and thus your net worth), the purchase of a new car typically results in a depreciating asset and does not increase net worth. In fact, due to depreciation, it might decrease net worth over time.

Which of the Following Does Not Increase Your Net Worth