Question

What would happen to your net worth if you sold a tangible asset you owned for $1,000 and used the money to pay off your credit card balance for $1,000?

Answer 1

If you sold a tangible asset you owned for $1,000 and used the money to pay off your credit card balance for $1,000, then your net worth would remain the same.

To add, the concept applicable to individuals and businesses as a key measure of how much an entity is worth is called net worth.