Question

Over the period of a year, Julie's net worth decreased. Which of the following could be true?

a Julie's assets and liabilities decreased by the same amount.
b. Julie's assets and liabilities increased by the same amount.
C. Julie's assets increased by more than her liabilities.
d. Julie's assets decreased by more than her liabilities.
Please select the best answer from the choices provided

Answer 1

Answer: Julie's assets decreased by more than her liabilities.

Step-by-step explanation:

Assets are simply the resources that a person or company has while liabilities has to do with the debt that the economic agent owes others.

The reason for the decrease in the net worth of Juliet will be when the value of her debt increased more than the rate at which her asset increased. In this case, Julie's assets decreased by more than her liabilities.

The correct option is D.